Federal Open Market Committee

Looking at today's scheduled release of Minutes from the September FOMC meeting (which at least according to one trader will be the "start of the market changeover process"), RanSquawk reminds us that the Federal Open Market Committee stood pat at the meeting, as expected. The Committee also announced that it would begin to shrink the size of its balance sheet in October, as expected, with the process falling in line with a previously disclosed detailed plan.

Authored by Chris Whalen via The Institutional Risk Analyst,

“The great wheel of circulation is altogether different from the goods which are circulated by means of it. The revenue of the society consists altogether in those goods, and not in the wheel which circulates them”

 

Adam Smith, 1811

Authored bvy Daniel Nevins via FFWiley.com,

As reported earlier this morning by the Wall Street Journal, President Trump and Treasury Secretary Mnuchin met with Kevin Warsh yesterday to discuss the potential vacancy at the Fed next February.

Warsh already has central banking experience, having sat on the Federal Open Market Committee (FOMC) from February 2006 until March 2011.

In short, buy stocks.

Remember that 2011 NY Fed study which found that since 1994, a stunning 80% of all equity returns on U.S. stocks were generated over the twenty-four hours preceding scheduled Federal Open Market Committee announcements, a phenomenon called the pre-FOMC announcement “drift.”

“It was the best of times, it was the worst of times, it was the age of wisdom,

it was the age of foolishness, it was the epoch of belief, it was the epoch of incredulity,…”

Charles Dickens

A Tale of Two Cities

I'm back -- Chris

This week’s meeting of the Federal Open Market Committee is being set up in the financial media as a contest between the anti-inflation tendency led by Fed Chair Janet Yellen and the pro-growth forces led by President Donald Trump.  Would that it were so.