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Wednesday, May 20, 2009
2:05 PM TweetThis
  • FOMC minutes: the economy will continue to contract, unemployment will rise and remain elevated through the end of 2011, inflation will remain subdued. Some officials are open to buying more Treasurys. (Read the full FOMC minutes)
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This news story has 21 comments:

  •  
    who knew?!
    May 20 02:08 PM | Link | Reply
  •  
    Well gee, at least prices won't go up as paying customers lose their jobs.
    May 20 02:11 PM | Link | Reply
  •  
    Did anybody else notice that the unemployment projection reaches out a little longer than it has before?
    May 20 02:14 PM | Link | Reply
  •  
    The question here is; How will the Markets react? At the moment it doesn't look clear either way. Let the games (tug of war) begin............
    May 20 02:16 PM | Link | Reply
  •  
    Another day another new angle from the fed, fortunately their are seven members of the Board of Governors of the Federal Reserve, so expect a new opinion everyday.
    May 20 02:16 PM | Link | Reply
  •  
    It was 2010 before, I think.


    On May 20 02:14 PM Drew Arnold wrote:

    > Did anybody else notice that the unemployment projection reaches
    > out a little longer than it has before?
    May 20 02:17 PM | Link | Reply
  •  
    Maybe they should consider buying S&P futures. People feel good when the stock market goes up. Since they think it is all a matter of sentiment, that seems like a logical option.

    If you think that is market manipulation, consider the announcements they timed at 8:30am on option-expiration Fridays. Also, consider how they try to affect bond prices by either buying them, guaranteeing losses, or financing.
    May 20 02:22 PM | Link | Reply
  •  
    Hopefully this will stop the idiots that are out there saying we've hit bottom. We haven't even come close to the bottom.
    May 20 02:23 PM | Link | Reply
  •  
    The summary provided in this Market Current is seriously skewed and inaccurate. I read the full FOMC minute but could not find any support for the statement:
    " unemployment will rise and remain elevated through the end of 2011".

    The minute is actually very vague on the future:
    "economic activity is likely to remain weak for a time. "
    May 20 02:26 PM | Link | Reply
  •  
    Unemployment rising into 2011 = More foreclosures and more credit card defaults and lower retail sales = green shoots! Buy. Buy. BUY!
    May 20 02:29 PM | Link | Reply
  •  
    I wouldn't bet on that. Most people believe that optimism is good in general and, thus, PREFER to believe that things are getting better. They will not change their minds until they are hit in the face by a 2x4. If that happens, they will retreat to: "nobody knew"


    On May 20 02:23 PM Mozatta wrote:

    > Hopefully this will stop the idiots that are out there saying we've
    > hit bottom. We haven't even come close to the bottom.
    May 20 02:30 PM | Link | Reply
  •  
    "The Fed now expects the economy will shrink this year between 1.3 and 2 percent. The old forecast called for a contraction between 0.5 and 1.3 percent. The unemployment rate may hit nearly 10 percent, up from 8.8 percent in the old forecast."

    ASTOUNDING FACTS! LOL
    May 20 02:30 PM | Link | Reply
  •  

    The way I see it; you have a 50/50 chance of being right. The same odds as the idiots.

    On May 20 02:23 PM Mozatta wrote:

    > Hopefully this will stop the idiots that are out there saying we've
    > hit bottom. We haven't even come close to the bottom.
    May 20 02:34 PM | Link | Reply
  •  
    Buy. Buy. BUY Courtesy of Mr Hoover.

    that's exactly what I'm going to do. When my point is hit, I'm going to buy ultra short etfs and direxion 3x bears..............

    Ain't hit my point yet..........
    May 20 02:37 PM | Link | Reply
  •  
    If you want to hear more lies, please just turn on the TV or listen to bankers and policticians. As soon as they realease Feds statement stock market goes up. Yeah, lets monitaze more debt. This would very good idea especially for the dollar. We will keep pumping more money until nobody buys our debt and commodity prices will continue to rise. Idiots.
    May 20 02:37 PM | Link | Reply
  •  
    >We will keep pumping more money until nobody buys our debt and commodity prices will continue to rise. Idiots

    Actually, the current rise in commodity prices might be traced to OPTIMISM, not actually facts of a return to economic growth fueling future demand for raw materials.

    Once the current market rally collapses, expect commodity prices to follow...

    www.reuters.com/articl...

    "Commodities have been rising since early this year, supported by an unusually close correlation with equities markets, which are factoring in a return to economic growth that should fuel demand for raw materials.

    The optimism is not necessarily based on evidence."
    May 20 02:48 PM | Link | Reply
  •  
    This latest news is not really new, just more of the same. Unfortunately, I don't see signs that economic recovery is occurring or even see signs that economic policy is setting the stage for growth. Much of what the government continues to do is not conducive to stimulating growth. I can't see equities doing well in this environment.
    May 20 03:03 PM | Link | Reply
  •  
    "The staff again expected that the unemployment rate would rise through the beginning of 2010 before edging down over the rest of that year. " Directly from the FOMC minutes.

    Does it sound like the headline?

    I'm lthinking the headline was written by a Bear.
    May 20 03:10 PM | Link | Reply
  •  
    And we're supposed to believe the Fed when they say inflation is under control? HA!!!!! That's the greatest reason to believe that inflation will be OUT of control soon enough. Anyone watch their commodities stocks go up today and not think inflation is beginning to perk up?

    The dollar will tank beyond belief, inflation will run up to 1970's levels, and then the Fed of course will not be able to tame what they've started with the printing presses running 24/7.
    May 20 04:25 PM | Link | Reply
  •  
    While the minutes from the April FOMC meeting mentioned that some members raised the possibility of an increase in the total amount of asset purchases, one has to wonder what they may be thinking now with the US$ index lower by almost 6% since the day before the April meeting, the CRB higher by 12% and the 10 yr bond yield up almost 20 bps. Looking forward, do they step it up and fight the bond market in order to keep rates low or do they sit on their hands and let the current plan unfold. Hopefully at some point (I was hoping a while ago), the Fed will disabuse themselves of the belief that they constantly have to do something and of the belief that what they are doing is really contributing to the long term health of this country. Ben and the boys need to just sit on their hands for a while. Fat chance of that happening would be my bet.
    May 20 07:55 PM | Link | Reply
  •  
    Technically or otherwise (MM), they are doing that already with the treasury purchases

    On May 20 02:22 PM Harry Tuttle wrote:

    > Maybe they should consider buying S&P futures. People
    May 20 09:17 PM | Link | Reply
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