Courtesy of Mish
In a press statement regarding today's FOMC meeting, the Fed announced that economic conditions would "likely warrant exceptionally low levels for the federal funds rate at least through late 2014".
If It Doesn't Work, Keep Doing It
As noted in Premature Dollar Obituaries and Mainstream Economists' Monetary Insanity; Keynes-Inspired Great Depression; Lessons Not Learned, this policy decision is highly unlikely to accomplish what Bernanke wants.
Bernanke's policy now boils down to "if it doesn't work, we'll keep doing it until it does". Those on fixed incomes have been crucified by the Fed's policies and will continue to be crucified by the Fed's policies until low interest rates work.
Reaction of Gold, Silver, $HUI to FOMC Statement
$HUI 10-Minute Chart
Gold 10-Minute Chart
Silver 10-Minute Chart
The $HUI gold miner index blasted higher on the FOMC announcement. Interestingly gold and silver blasted higher before the announcement.
Treasuries rallied as banks and brokers font-ran the trade.
This is all well and good for the 1% and for the banks that front-ran the bond trade, but it sure is not doing anything good for those on fixed income or most of the 99%.
I wrote about the plight of those on fixed income in detail, nearly one year ago in Hello Ben Bernanke, Meet "Stephanie".
Hello Stephanie, uncle Ben promises more of the same.
Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
