Yeah, sure, the headline is?
“The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. With appropriate firming in the stance of monetary policy, the Committee expects inflation to return to its 2 percent objective and the labor market to remain strong. In support of these goals, the Committee decided to raise the target range for the federal funds rate to 1/4 to 1/2 percent and anticipates that ongoing increases in the target range will be appropriate.”
The Fed -using a range – blows up any confidence we had in their ability to get ahead of the coming Q3 recession we’ve got modeled.
It gets worse:
Because in the implement note they DID NOT MENTION SOMA!!!
Let’s see who else notices this glaring POS move. I doubt the national press will make a point of it (press feeding is just ahead as we post).
See, here’s the thing: In January, the Implementation note directed easy money for SOMA.
“Effective January 27, 2022, the Federal Open Market Committee directs the Desk to:
- Undertake open market operations as necessary to maintain the federal funds rate in a target range of 0 to 1/4 percent.
- Complete the increase in System Open Market Account (SOMA) holdings of Treasury securities by $40 billion and of agency mortgage-backed securities (MBS) by $20 billion, as indicated in the monthly purchase plans released in mid-January.
- Increase the SOMA holdings of Treasury securities by $20 billion and of agency MBS by $10 billion, during the monthly purchase period beginning in mid-February.
But, in today’s implementation note, no mention of SOMA – which we assume means the January desk order stands.
Seriously? WTF? Freebie for Big Corps and screw Wee lil peons?
Has Jerome Powell had lunch with Tony Fauci yet?
Seem to be cut of the same cloth!
Write when you get rich,
PS: expect a courtesy rally by the commercials during the P-speak. Reality will be by tomorrow.