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Former Federal Reserve economist Stephen Oliner, Janney Montgomery Scott investment strategist Mark Luschini, PNC senior economist Gus Faucher and FB...
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You very much so as expected really same sort of language of that we've seen.
From the December meeting let's bring in the panel that we can get some reaction meeting with Stephen -- Linda Stephen -- -- anything in there that surprise you was it.
Pretty much as expected.
And at that was totally as expected yeah I -- it's just steady as she goes implementing the -- apparent party have in place.
There had been a question about whether they would provide further guidance about.
The end game for Q -- -- and of course they didn't because there's too much disagreement among the members of the committee for them to have a consensus view that this.
Point.
You know mark we knew that basically that Esther George -- gonna come out DV one dissenter.
She not have much of a leg to stand on -- she uses in any given them a little more support behind -- this is gone -- Wherever.
I -- -- -- that was a very dovish statement and we know.
That's fed governor constitution right now is very Darvish in terms of the way the Fed voting members of their -- Of the committee -- so the fact the matter is.
We're going to see QE3 year QB for however you define it well into 2013.
If not beyond.
The cult everybody -- in here the market's not rallying while we're just saying it down about fifteen points now on the -- -- -- -- hearing.
Got them the most interesting part but how many hours -- right near the unchanged line and then -- got in the numbers and -- and then talking about this.
And talk strains on global markets and downside -- -- me.
Elite sold off -- got these levels were down fifteen points and that and when they talked about how they're gonna support the recovery.
Without purchases of mortgage backed securities and treasuries -- forty billion point five billion.
Per month then started to see that we know.
Moved into positive territory we know that unemployment remains elevated police searching here about the downside risks and still concerns about unemployment and we sold off but the fact that the Fed is there.
With those with a fruit juice I didn't -- you know whatever you want to call.
-- carried out -- many many and we go back.
Santa let's let's out of do you -- -- -- over there in the pits but -- with -- pulled up about 1%.
Yeah -- -- think that he's seeing yes the stock market pretty much unfazed by the Fed's statement.
But down here yet that please -- -- highs some volume picking up on the floor these kids didn't fill up back at this -- announcement.
And we're -- -- in the bond market right now short term interest rates pared their earlier losses.
And obviously -- keeping this stimulus in place right now you're seeing a big reaction.
In the bond market also the long.
Long term bonds also bouncing back just a little bit paring their earlier losses I wanna point out gold prices gold is now I'm about 2122.
Dollars and the session.
The goal that session highs.
While the Euro is gaining more ground against the US dollar honest Fed's announcement the US dollar making a new fourteen month low.
Against the Euro currency -- That -- a big impact.
On our market and certainly doubles bringing gusts close Chez Gus I noticed.
What Peter was saying he was saying that the Fed.
-- -- is what we gonna continue the existing programs and although policy tools as appropriate what all the tools and they have in the proverbial toolbox left.
Well -- it's unclear I mean we talked about.
Raising the interest -- that the Fed pays on reserves and that that may encourage banks to lend -- you know it's unclear beyond that what what they can do you know they they see that they have more tools we'll have to see how it plays out.
I don't think they're gonna need him at this point that we'll see have to see how that plays out over the next few months if if things do devolved.
So -- let's play this -- for the markets unchanged money keeps coming does that mean we continue receiving markets go up or not.
Well I think as we continue to see more liquidity brought into the system which is going to basically force assets out the risk free -- if you will.
From money markets and short term fixed income instruments knowing that -- will be buried from now until at least probably 2015.
Or beyond.
That means that people were going to have to venture into risk assets.
And therefore equities and particularly high dividend paying equity so I believe that to be the way that this thing is going to progress leniently.
For months to comment perhaps sparked the great rotation.
And you know it's an attempt to -- point we are seeing a market sell -- that was the the yes the Fed is there whatever you need this type of thing but the downside risks and -- kind of language seeing the -- now dropping twenty some points.
I thought I had one last thought when we talk about confidence.
You know you talk about investor confidence and talk about consumer confidence.
That we have a tough economy coupled with now taxes that are something -- in their payroll tax -- everybody -- money coming out of their weekly paycheck.
Yeah our worry.
So this this highly accommodated that I think that's it -- it with this at least for the time being.
Stephen.
We talked about 3-D.
85 billion a month.
And yet I don't really hear out of them from my pastor George a concern about that should they be more concerned.
You know at this point I don't think they should be more concerned that they need to keep their eye on the ball because now you need to be focusing on whether -- going to be disruptions from their purchases in the asset markets.
And also whether they might be fueling asset bubbles so they need to be very careful but I don't think at this point there into the territory where those costs have gotten very large.
That's my -- about 28 points right now.
Somebody's not happy about what they said and yet we still have money coming in.
This study concern out there that economic data coming in better and better at this they couldn't eat turn to -- -- -- sooner than -- -- expects.
Well I mean I think today's GDP report makes that a little bit less likely -- -- when the things that they said was you know we we think that this is a one time aberration I think that was pretty clear in their statement today.
But certainly growth in the second half of 2012 was only about one and a half percent and an annual rate.
That's still pretty disappointing we're still down by about four million jobs from where we were prior to the recession.
So I don't think that there's any danger the Fed turning off the spigot anytime soon they've made it clear that they want unemployment lower and we'll have to see how that plays out but.
They're gonna keep being aggressive until they see that unemployment rate below six and a half percent.
Dow down 27 points right now our special thanks cynical that a Levy Sanders Smith Stephen Eleanor Mark Sweeney and -- -- --
