FOMC announcement

Wednesday was finally a day with market moving news in it: the FOMC announcement. This information would be revealed to the market in the afternoon and since there was nothing happening before that, the market was as dead as a *cough* normal day.

At 2:15pm ET the announcement hit the tape and we read the following...

• FED REPEATS LOW RATE LIKELY FOR CONSIDERABLE TIME AFTER QE ENDS

• FED SAYS HIGHLY ACCOMMODATIVE POLICY `REMAINS APPROPRIATE'

• FED TAPERS BOND BUYING TO $35 BLN MONTHLY PACE FROM $45 BLN

In essence, there was no surprise from the Yellen Fed. The FOMC kept its promise to continue its reduction of QE; however, until it ends, the Fed is still EXPANDING the monetary base. Moreover, the Fed promised that its ZERO interest rate policy (ZIRP) is not only here to stay - but will probably be extended forever.

Why would the Yellen Fed say that it will extend ZIRP "for an extended period of time" (read: as long as it wants) if everything is fine? That is to say; the so-called recovery is chugging along like a drunk at an open bar. Uhh, coz it aint.

Fed officials slashed their growth forecast for 2014 from 2.9% to as low as 2.1%. What was a prior "forecast;" as bad as (read: as high as) 4%. What a joke!

But don't worry, the latest clueless economist-guesser said the following "Economic activity is rebounding in the current quarter and will continue to expand at a moderate pace...The economy is continuing to make progress towards our objectives" of full employment and 2 percent inflation.

Just give her another 10 YEARS or so and maybe her and the last naive clown that ran the FOMC will have both been correct.