FOMC: Here’s the Munny line…

Fed talks taper

“Looking ahead, most participants noted that, provided that the economy were to evolve broadly as they anticipated, they judged that it could be appropriate to start reducing the pace of asset purchases this year,” the minutes stated, adding that the economy had reached its goal on inflation and was “close to being satisfied” with the progress of job growth.

However, committee members broadly agreed that employment has not met the “substantial further progress” benchmark the Fed has set before it would consider raising rates.

This farce is so readable as to not even be interesting. The Fed is putting out there the prospect of tapering its (funny) munny policy with respect to bond purchases. Well Sherlock, what did you think they were going to do, go on about how much more inflation they can produce while the public is manning the pitchforks, torches and mobbing up?

But when following a manipulative entity like this it is important to note that they are also hedging their bets. If the markets react too aggressively to the jawbone they’ll use that hedge.

Clicking the headline yields the article…

Stocks are taking a thus far normal pullback…


…while key ‘inflation trades’ like commodities are getting clubbed.

In other words, all normal and all according to the best laid plan. Short-term, that is.

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