Fed Repeats Inflation Nonsense But Stays the Course For Now

Statement Tracker

The Fed hardly changed any words compared to July 28 as the WSJ Statement Tracker shows.

Here is the official Press Release. 

Repeated Nonsense

There’s a bit more, all unrevised except the date at the end.

The Fed repeated its message of letting inflation run above 2% to make up for inflation running below 2% previously. 

Of course, the Fed does not consider housing, stock market bubbles, nor junk bond bubbles in its measure of inflation.

Tapering 

Tapering is not a reduction in the Fed’s balance sheet, it is a slowing of the addition to the Fed’s balance sheet.

While the Fed continues to expand its balance sheet by $120 billion a month, it is simultaneously reducing its balance sheet via Reverse Repos.

I will do an update on this asinine arrangement by the Fed later today. We have hit new record highs thus the Fed is already tapering in practice. 

Stay Tuned In!

Like these reports? If so, please Subscribe to MishTalk Email Alerts.

Subscribers get an email alert of each post as they happen. Read the ones you like and you can unsubscribe at any time.

If you have subscribed and do not get email alerts, please check your spam folder.

Mish

Source: https://mishtalk.com/economics/fed-repeats-inflation-nonsense-but-stays-the-course-for-now