CNN has a story out about the minutes from the Federal Reserve meeting being released early to about 100 people and this caused a bit of a stink. Really? C’mon now, we all know that the insiders already had any pertinent info before the Fed meeting ever took place. Sure they’re not supposed to, insider trading and conflicts of interest and the like, but let’s be intellectually honest about how things work in the beltway.

At any rate, I had to take a look to see what might have been so important that might have “leaked” out. This would likely be the info most sought after as it determines the Fed direction on setting the interest rate and buying bonds (read printing money).

The expected path for the federal funds rate implied by
market quotes moved down over the intermeeting period,
likely reflecting policymakers’ communications
that reinforced market expectations of continued monetary
policy accommodation. Results from the Desk’s
survey of primary dealers conducted prior to the March
meeting showed that dealers continued to view the
third quarter of 2015 as the most likely time of the first
increase in the target federal funds rate. In addition,
the median dealer continued to see the first quarter of
2014 as the most probable time for the Federal Reserve’s
asset purchases to end, and most dealers anticipated
that the pace of purchases would be adjusted
down before ending.

Personally, I like the part about “continued monetary policy accomodation”. As in since when is it the job of the Federal Reserve to accomodate the markets? Theoretically, they have a dual-mandate to stave off inflation and pursue full-employment. Accomodating market investors isn’t supposed to be a goal but rather a result of good monetary policy.

Why not just come out and say it? The Fed exists to make the banksters and the elites mucho grande dollars!

At any rate, as you read the plan is to start jacking up interest rates in late 2015 and stop printing money at the end of this year (the first quarter of fiscal year 2014 is Sep.-Dec. of 2013). That has been the announced plan and should come as no surprise to anyone.

The rest is the standard blah-blah-blah about how to balance out the argument that our economy just keeps on improving while at the same time is disappointing. There is even some comic relief in these usually bland Fed meeting minutes.

One participant
cited research indicating that long-term unemployment,
which is currently especially high, could lead
to persistently lower income and wealth for those affected,
even after they found jobs.

Seriously? You’re sure? Unemployment could lead to lower income and wealth? Add that to my list of learning something new everyday. I wonder who paid for the “research” to uncover this little nugget?

There is also a sliver of hope. A voice of reason amongst the hordes. The Fed voted to continue plodding along with its artifical manipulation of the federal funds rate to keep it at 0-.25% and to keep printing money at $40-45 billion per month with one dissenter. Was it Bernanke? Ha!

Voting for this action: Ben Bernanke, William C.
Dudley, James Bullard, Elizabeth Duke, Charles L. Evans,
Jerome H. Powell, Sarah Bloom Raskin, Eric
Rosengren, Jeremy C. Stein, Daniel K. Tarullo, and
Janet L. Yellen.

Voting against this action: Esther L. George.

Ms. George dissented because she continued to view
monetary policy as too accommodative and therefore
as posing risks to the achievement of the Committee’s
economic objectives in the long run. In particular, the
current stance of policy could lead to financial imbalances,
a mispricing of risk, and, over time, higher longterm
inflation expectations. In her view, the Commit-
tee’s asset purchases were providing relatively small
benefits, and, given the risks that they posed as well as
the improvement in the outlook for the labor market,
she thought they should be wound down.

Way to go Esther! Too bad nobody is listening to you.

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