Submitted by Tyler Durden on 06/20/2012 09:45 -0400
Art Cashin
Ben Bernanke
Fail
Federal Reserve
Monetary Policy
Yield Curve
The always pragmatic Art Cashin summarizes today's 12:30pm FOMC announcement. In summary: "look for the Fed to dangle a big carrot - some semi-specific course of
action that would be put in place if the labor markets continue to
worsen. Net/net, he needs to keep the door wide open and maybe outline certain milestone “triggers” that will allow the Fed to act later in an election year without being accused of being overtly political." Said otherwise, the happy ending will likely be deferred one more time. The market may not be very happy.
From UBS Financial Services
May I Have The Envelope, Please – This afternoon the FOMC will announce its decision on policy. At 2:30, Chairman Bernanke will hold a press conference to expand on that and take questions from reporters. The conventional wisdom is that the Fed will extend Operation Twist.
If that were so, we think the market would be disappointed. We also think that Mr. Bernanke knows that. Mr. Bernanke, throughout his tenure has scrupulously tried not to surprise the market. He has tried to make the Fed more transparent in order to avoid the risk of surprise.
Yet, Mr. Bernanke also knows that every Fed initiative is not greeted universally with open arms. The QE initiatives and even Twist have been criticized by some for producing spikes in commodities and even food prices. Within the FOMC itself, there are said to be critics who feel the recent efforts have run into the law of diminishing returns.
pb[So, Mr. Bernanke is in a bit of a quandary. The economy may need some easing. The markets want more easing. Prior efforts, however, have not achieved the desired effect and may even have produced some unintended negative consequences.[/b]
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http://www.zerohedge.com/news/art-cashins-no-frills-preview-fomc?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29
Realist - Everybody in America is soft, and hates conflict. The cure for this, both in politics and social life, is the same -- hardihood. Give them raw truth.
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