Statement Tracker
The Fed hardly changed any words compared to July 28 as the WSJ Statement Tracker shows.
Here is the official Press Release.
Repeated Nonsense
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
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.
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