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Fed set to continue tapering despite disappointing jobs data

  • The Federal Reserve is likely to continue scaling back its QE program despite the disappointing nonfarm payrolls report on Friday, writes WSJ Fed watcher Jon Hilsenrath.
  • The FOMC has cut the Fed's bond-buying program by $10B in each of its last two meetings and is set to trim purchases by another $10B at its next get together in March, when it would have another jobs report to consider. The Fed is currently acquiring $65B in bonds a month,
  • Richard Fisher of the Dallas Fed, who votes on policy this year, told CNN after the employment data came out that policy makers are "not swayed by a single number."
Comments (17)
  • june1234
    , contributor
    Comments (2499) | Send Message
    they've made that clear with their actions as have Cbs around the globe.
    9 Feb, 04:12 AM Reply Like
  • financeminister
    , contributor
    Comments (613) | Send Message
    So much for what the talking heads predicted Yellen would do.
    9 Feb, 04:29 AM Reply Like
  • minecanary
    , contributor
    Comments (411) | Send Message
    Don't kid yourself...she's only been in office for a few hours, not months; the leopard hasn't changed it's spots. She was put in that spot to do one thing and that's print like mad as soon as the banks/Dems demand it. As soon as the debt ceiling is raised, the paper will be ordered.
    9 Feb, 10:25 AM Reply Like
  • flemsnopes
    , contributor
    Comments (124) | Send Message
    "not swayed by a single number"


    What about TWO numbers?
    9 Feb, 06:59 AM Reply Like
  • Lawrence Fuller
    , contributor
    Comments (326) | Send Message
    The Fed's purchases have simply tracked the current account deficit, which is shrinking, as are their has nothing to do with jobs, never did, never will. Just a smoke screen to finance the deficit.
    9 Feb, 08:36 AM Reply Like
  • Interesting Times
    , contributor
    Comments (10164) | Send Message
    MARKETS have been up for a few days yet gold has not sold off. Would appreciate ANY thoughts why on the latest chapter in the blog.


    Some feel that gold ONLY trades on fear...I can use some help explain why this isn't true.



    9 Feb, 09:08 AM Reply Like
  • DeepValueLover
    , contributor
    Comments (8157) | Send Message
    If the economy has recovered then why not stop all Fed purchases and begin to shrink the Fed balance sheet?
    2008 was a long time ago and Obama has been in charge for many years now.
    I don't get it...haven't we recovered enough to stop Fed bond purchases all of these years after the "crisis"?
    9 Feb, 10:25 AM Reply Like
  • flemsnopes
    , contributor
    Comments (124) | Send Message
    I think you tacitly answered your own questions. (see line 3)
    9 Feb, 10:46 AM Reply Like
  • sl100
    , contributor
    Comments (110) | Send Message
    The reason they are reducing is the balance sheet is bloated and is really not helping what they wanted to achieve. Also by year end they will have about 5T and about 40% of the 10y treasury. So they are kind of trapped. All it did was push up asset prices into a bubble territory and benefiting a very few and screwed the savers and helped the speculators.
    9 Feb, 11:07 AM Reply Like
  • Moon Kil Woong
    , contributor
    Comments (11015) | Send Message
    I agree. Even their reduction will continue to add trillions, unsustainably. There is no way politically that they can even hope to unwind QE and there will likely be howls on Wall Street as the taper continues. It's just that foreign bond holders will vote with their feed if the taper doesn't continue.
    9 Feb, 11:16 PM Reply Like
  • Interesting Times
    , contributor
    Comments (10164) | Send Message
    So when do they taper the taper ??
    9 Feb, 11:40 AM Reply Like
  • RS055
    , contributor
    Comments (1887) | Send Message
    They will keep tapering until things really break - in the rest of the world , esp. China. That will create an insatiable appetite for Dollars. If anyone in the world is confused about the question of "who's yo daddy?" - it will become crystal clear. Stocks will be allowed to breakdown as well. the big playas will get a heads up several weeks in advance so even the slowest sloths amongst them can figure out how to make money in the collapse.
    Then when the playas are fully loaded, and the rest of the world is on its knees begging for the fed to something, anything - then They will reveal some new strategy - it wont be QE anymore - that is done and dusted , old hat, has worn out its ability to shock and awe.
    9 Feb, 02:36 PM Reply Like
  • diadochi
    , contributor
    Comments (199) | Send Message
    Where's the sunshine, gentlemen? This sort of attitude has been on display here in SA some 100% ago, year after year.


    Not saying that you aren't on to something, but when? Isn't it possible that not being in the midst of a bone breaking global depression is something to celebrate? Is it possible we are actually moving out of the danger zone?


    What about a sustained global bull market? Is that possible? Are you totally discounting that? What would a trader in 1984 have said about stocks? Dead cat bounce? I remember my dad being all about commodities in the late 70's, as stocks, well, they were dead.


    But possibly you are right, guns, ammo and a shovel to dig a foxhole with--not to mention some cash. I won't sell you completely short. :)
    9 Feb, 08:44 PM Reply Like
  • minecanary
    , contributor
    Comments (411) | Send Message
    The FED - and the U.S. has shot it's load. The problem is, so has everybody else. It's like
    the ultimate circle jerk and the girl still isn't satisfied. World-wide, the politicians have over promised, overspent, over taxed, and mostly over stolen. There is no economic power ready to emerge that doesn't have serious problems of it's own. Things won't shake out until we have a U.Sand/or China spring...that's the real reason the NSA is watching every citizen and the 99% movement got subverted, then crushed. Plant your fruit trees, grow your gardens, stash your gold, and stock pile your bullets, NOW.
    9 Feb, 09:21 PM Reply Like
  • 1GreatCFA
    , contributor
    Comments (830) | Send Message
    @ @ "two" numbers. Hahaha.


    For me reading a lot of these posts conjures up many thoughts. But I have to say that one of the thoughts most vivid [and current] on my mind relates to a recent incident that occurred at my office about a week and a half ago. Our Marketing girl, nice lady VERY easy on the eyes, presented me with a recent piece by Dave Rosenberg. She argued that because Rosenberg, a bear, was decidedly bullish in his posture it might be a good time for me to invest in the stock market. As a new comer and someone who has failed CFA Level 1 a few times now I don't put a lot of stock into her ideas. Frankly, I just smile and say "Oh thanks, I'll look into it" while hoping to catch a glimpse of her magnificent rack or underwear selection for the day. The truth is, to me, this is a dangerous warning signal: put who have absolutely no idea about finance freely and openly discharging investment advice. It literally keeps me up at night. I think about how in less than one month it will be 5-years since the bottom in March of 2009. I think about how $2 Trillion has been magically created out of thin air and added to the bottom line of only the richest people. I think about how companies, and this is nothing new, have been hitting their EPS targets by cutting costs and financial engineering. I think about guys like Marc Faber, Jim Grant, Jim Rogers and Peter Schiff. May-be they are all crazy. Or may-be this was just a dream. Anyways the title of this thread is Fed set to continue tapering despite disappointing jobs report. Do I think they continue? I mean I don't know. But what I do know is that for the first time in 15 years I am physically scared of being in Finance and often think about doing something else. Anyways I don't know that this helps...I wrote this mainly to organize my thoughts and to underscore perhaps my own misplaced confidence in very young Analysts.
    9 Feb, 10:20 PM Reply Like
  • mitrado
    , contributor
    Comments (1948) | Send Message
    If they don't taper... they'll create the biggest Ponzi's scheme in History. Better end it sooner than later.
    10 Feb, 06:26 AM Reply Like
  • flemsnopes
    , contributor
    Comments (124) | Send Message
    Soooo, you're saying that "milestone" wasn't achieved with QE1? How about QE2? No? Then, how about QE3? Operation Twist? You're probably right, Janet Yellen will put a stop to the madness this time for sure.
    10 Feb, 06:52 AM Reply Like
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