More on the late-day Fed leak: Officials have become impatient with sluggish growth and high...

More on the late-day Fed leak: Officials have become impatient with sluggish growth and high unemployment, reports Jon Hilsenrath. MBS purchases, a pledge to keep rates low for longer, or even a move to push down nearly microscopic short rates even lower are among the choices available to the FOMC. Action could come at the July 31 meeting.
Comments (29)
  • montanamark
    , contributor
    Comments (1456) | Send Message
    they are "impatient" in their ivory towers? what about americans who are suffering with a declining economy
    wonder if the "impatience" is coming from higher up :)
    24 Jul 2012, 04:16 PM Reply Like
  • Dogpound
    , contributor
    Comments (160) | Send Message
    Fed does not weigh in unless they have cover. Unemployment steady, market at 1330, 4 months to election, inflation at target level.....good luck.
    24 Jul 2012, 04:19 PM Reply Like
  • untrusting investor
    , contributor
    Comments (9903) | Send Message
    The corporate welfare bums and corporate socialists never quit whinning for more freebies and more central bank interventions. They wouldn't even know what a free market is nor have any idea about real price discovery or how real competition actually works.
    25 Jul 2012, 12:59 AM Reply Like
  • 2MuchDebt
    , contributor
    Comments (412) | Send Message
    Unfortunately those options will not spur any kind of meaningful growth for the economy. The market will probably get all excited for no reason and then fall back after it realizes this "monetary stimulus" is not doing much and hasn't for some time.
    24 Jul 2012, 04:25 PM Reply Like
  • montanamark
    , contributor
    Comments (1456) | Send Message
    remember the old days when market manipulation was considered a crime - LOL
    24 Jul 2012, 04:27 PM Reply Like
  • Banner17
    , contributor
    Comments (60) | Send Message
    In other words, the Fed is OUT OF AMMO! Pushing interest rates lower via jawboning, MBS props or any other way will have zero effect on the economy, especially as it slides into recession. If record low interest rates haven't already boosted the economy, nothing the Fed can do will. Pray your elected officials can come up with a plan, but that will be a waste of time (see Europe).
    24 Jul 2012, 04:30 PM Reply Like
  • dieuwer
    , contributor
    Comments (2977) | Send Message
    Not at all. The FED could print money and prop up the DOW all the way up to 100,000 if they want.
    25 Jul 2012, 12:33 PM Reply Like
  • 2MuchDebt
    , contributor
    Comments (412) | Send Message
    The Fed does not print money and I strongly disagree.
    25 Jul 2012, 12:50 PM Reply Like
  • Whitehawk
    , contributor
    Comments (3121) | Send Message
    The WSJ needs to clarify Mr. Hilsenrath's role. Is he a spokesperson for the Fed? Does he just write these articles at the behest of [any number of agents] that may gain from the mouthpiece? Note the pieces are written predominantly on days of moderate-strong declines.
    24 Jul 2012, 04:30 PM Reply Like
  • winningtrader
    , contributor
    Comments (2459) | Send Message
    I am not a complete expert but my opinion is that the FED would like at times to communicate its thinking and they use him for that purpose.
    24 Jul 2012, 04:35 PM Reply Like
  • Whitehawk
    , contributor
    Comments (3121) | Send Message
    My comment was rhetorical, but yes, the worn-out excuse is that Hilsenrath is a conduit for dovish Fed mind rumblings. However, that does not rule out insider trading linkages somewhere (my dual point).
    24 Jul 2012, 04:41 PM Reply Like
  • Storm Warning
    , contributor
    Comments (177) | Send Message
    But this is a serious point. Anyone else would be prosecuted for the "unfounded, speculative, and market manipulating" rumors. Last I checked the law is supposed to still apply to everyone, what's changed?
    24 Jul 2012, 05:13 PM Reply Like
  • sr1977
    , contributor
    Comments (365) | Send Message
    That must be the Fed's & Hilsenrath's "dual mandate" - manipulate the markets & insider trading/giving a heads up to their banking/congress buddies.
    24 Jul 2012, 06:13 PM Reply Like
  • into dark shadows
    , contributor
    Comments (483) | Send Message
    This is total BULLSH** if I do say so myself!


    I thought the fed didn't target asset prices?
    Just what the hell is Bubble Blowin Ben going to do that he hasn't already loosed on the "ONCE FREE", "Free Market System"?
    This is an abortion Fed Heads and W.S.J!


    Who the hell knighted this Hilsenrath dude and anointed him fed speaker in training to the masses?
    This is the garbage of third world, influence peddling charlatans!


    This is how we are conducting Fed Policy?
    With leaks!
    False statements to be retracted later?
    False economic numbers, constantly revised down,(U/E) estimates?
    Just what the hell have progressives TRANSFORMED the republic into?


    We have a mighty job ahead of us America,
    let us not fail the republic in November,
    because we chose to sit down!
    Let the fire simmer,keep it near.


    The individual,
    it's up to,
    24 Jul 2012, 04:31 PM Reply Like
  • patmann03
    , contributor
    Comments (45) | Send Message
    And Batman.


    But in all seriousness if your elected official isn't doing what you feel he should be doing. Vote him/her out!
    24 Jul 2012, 04:40 PM Reply Like
  • moneyTalksBSWalks
    , contributor
    Comments (194) | Send Message
    Yep, rinse and repeat. Trouble is that most congressmen bring home the bacon for their constituents, rest of the country be damned. Ahh if only we had a system of allowing voters to express an actionable opinion on congressmen outside their districts. You can bet that a lot of turds in both parties would be booted out :)
    Cantor, Pelosi, Durbin, McConnell, etc.
    25 Jul 2012, 09:11 AM Reply Like
  • into dark shadows
    , contributor
    Comments (483) | Send Message
    Spot on to all the comments!


    Now that Apple seems to have laid an egg,
    does Bubble Blowin Ben know in advance some mega glam rock star crapple stock is going to shake the markets to its core?
    Or is Benny the Bookie actually short CRAPPLE and looking to rack up some retirement Obama cash?
    We are not in a free market system and you need to see to what extent this administration will go!
    Garbage in.
    Garbage out!
    24 Jul 2012, 04:44 PM Reply Like
  • TWagen
    , contributor
    Comments (179) | Send Message
    THis market environment is just plain scary ! Wait until the fed actually has to act and their remedies do nothing. Then the panic will set in and my guess is very fast !


    We are close to that now.
    24 Jul 2012, 04:57 PM Reply Like
  • moneyTalksBSWalks
    , contributor
    Comments (194) | Send Message
    Spot on and agree
    25 Jul 2012, 09:13 AM Reply Like
  • 440978
    , contributor
    Comments (148) | Send Message
    That scenario, in my opinion, will be the catalyst that breaks the market's resilience. More specifically, as conditions deteriorate and the trajectory of the economy sags downward, once investors see that despite what the fed does that this momentum continues, this will be the shift from the markets's complacency to one of panic.
    25 Jul 2012, 09:24 AM Reply Like
  • Storm Warning
    , contributor
    Comments (177) | Send Message
    This Hilsenrath market manipulation seems like the Li(e)bor Scandal.


    I can't imagine it being legal.
    24 Jul 2012, 05:22 PM Reply Like
  • OutandBack
    , contributor
    Comments (74) | Send Message
    Yeah right, How often have we heard this when the market moves down a little.
    In my best chicken little voice "QE is coming QE is coming"
    24 Jul 2012, 05:34 PM Reply Like
  • Nolesince87
    , contributor
    Comments (259) | Send Message
    Fed wants to put off using its FINAL BULLET as much as possible. They have taken the cue from Europe that debt is not the only thing they can buy, but TIME!


    Now the question is, how much weight will this absurd market place on the "prelude to the announcement" of more liquidity? What I do know is that In the VERY end, the markets will dictate reality not the Fed.... the majority of the gains of the SP500 since 1994 revolved around the Fed, and I suspect we will ultimately trade closer to those 1994 levels by 2014 than we will to those 2007 peak levels.


    That lost decade will end up being that lost TWO DECADES
    24 Jul 2012, 06:10 PM Reply Like
  • Gusman
    , contributor
    Comments (2) | Send Message
    If the market believes in this 'leak' there may be a small rally which would be great for bears since it will offer another great shorting opportunity.
    24 Jul 2012, 06:11 PM Reply Like
  • tuning50
    , contributor
    Comments (12) | Send Message
    To me QE is trickle down inflation which buys time, which; in the short term buys more productivity at a lower wage from the middle class. More money chasing same amount of goods, of course stock prices will rise even though the GDP doesn't follow.


    Higher prices at the grocery store will frustrate the workers sooner or later, creating the perfect opportunity for unions to metastasize and widely move into the labor market.


    The unions collect mandatory dues from the workers then lobby congress for special sweetheart deals for the union and union elite. The union donates to the democratic candidates and the perpetual corrupt feedback loop is complete.


    Its all as if it was planned and orchestrated that way from Washington and Wall Street.


    Don't get me wrong, I think some unions are good some unions are bad. Towns and cities are going broke because of exorbitant government Union pensions.


    Have you seen the movie "The Hunger Games" ?
    24 Jul 2012, 11:43 PM Reply Like
  • EMS
    , contributor
    Comments (586) | Send Message
    This guy Hilsenrath is the most major, pathetic gigantic stock shill. I guess he is trading on this one way or another. Will provide a nice opportunity for the longs to get out intact. Never works the other way. Pathetic.
    24 Jul 2012, 11:49 PM Reply Like
  • divinecomedy
    , contributor
    Comments (465) | Send Message
    I just read this in Yahoo and I thought this deserves at least an article in Seeking Alpha. Enjoy :)


    "Bankers Psalm"


    The Federal Reserve is my Shepherd; I shall not want.
    It maketh me to lie down in green papers
    It leadeth me beside the recession.
    It restoreth my capital:
    It leadeth me in the paths of risk for profit’s sake.


    Yea, though I walk through the valley of the shadow of insolvency
    I will fear no losses: For the Fed art with me;
    Its interest rate and its printing press, they comfort me.
    It preparest a bailout before me in the presence of mine creditors;
    It annointest my head with bonuses; My pockets runneth over.


    Surely Power and Privilege shall follow me all the days of my life,
    And I will dwell in the House of the One Percent forever.
    25 Jul 2012, 11:17 AM Reply Like
  • kyleg17
    , contributor
    Comments (174) | Send Message
    If you really think QE is coming I've have to say your more gullible than a 7-year old. I have to say it is a good tactic by our federal government though. Every time our markets start to selloff someone says they are maybe just maybe thinking of deploying QE and all the " pros " take the bait and manipulate the market higher, even though the numbers are cleary saying recession. So I must tip my hat to the fed. It's almost as if just telling the markets they are going to use QE and not actually doing it is propping up the market therefore, giving more time for leaders around the world. However, they are simply LYING to us all lol. I think the average mom and pop investors are the smart ones by not even investing in this rigged scheme. They are not buying into the lies..
    25 Jul 2012, 02:04 PM Reply Like
  • moneyTalksBSWalks
    , contributor
    Comments (194) | Send Message
    QE3 is definitely possible if that is what it takes to prop up the market before the election. The current administration will go to any length to get re-elected. Printing money is a small price to pay. The real test for the market will be after November. Gas prices nationally will be below 3 quite conveniently right before the election. You are underestimating what an incumbent administration will do to remain in power.
    25 Jul 2012, 09:55 PM Reply Like
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