Fed Repeats Inflation Nonsense But Stays The Course For Now

A quick comparison of the Fed's statement today vs July 28 shows almost no changes.

Tapering Nonsense

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

Here is the official Press Release.

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 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.