Before I engage in my usual dissection of the bull crap session, here is the actual Federal Reserve Open Market Committee statement straight from their webpage:
June 18, 2025
Federal Reserve issues FOMC statement
Although swings in net exports have affected the data, recent indicators suggest that economic activity has continued to expand at a solid pace. The unemployment rate remains low, and labor market conditions remain solid. Inflation remains somewhat elevated.
The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. Uncertainty about the economic outlook has diminished but remains elevated. The Committee is attentive to the risks to both sides of its dual mandate.
In support of its goals, the Committee decided to maintain the target range for the federal funds rate at 4-1/4 to 4-1/2 percent. In considering the extent and timing of additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks. The Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage‑backed securities. The Committee is strongly committed to supporting maximum employment and returning inflation to its 2 percent objective.
In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook. The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee’s goals. The Committee’s assessments will take into account a wide range of information, including readings on labor market conditions, inflation pressures and inflation expectations, and financial and international developments.
As I was posting this, the idiot savant Jay Powell actually said “there is a housing shortage” which made me spit some high quality Polish made vodka on my keyboard, for which I shall be sending the moronocracy at the Federal Reserve a bill.
FYI, there is NO housing shortage. If one has been listening to the MacroEdge team and radio show which your esteemed host moderates, one would know there is an AFFORDABLE housing shortage due to the inflationary policies of this clown and the Federal Reserve thinking that they can pump money forever into an economy with no consequences.
Two statements stand out from today’s FOMC market attempts to pump equities and bond prices higher.
Number 1:
The unemployment rate remains low, and labor market conditions remain solid.
Has this assclown looked at the quality of job creation inside the B(L)S statistics? The majority of jobs “created” are temporary or low wage positions, hardly anything which indicates an economy on a sustainable growth trajectory.
Jesus, I just realized I ranted about the same thing in late 2007 on the radio.
Number 2:
Inflation remains somewhat elevated.
No kidding, really? It’s not “somewhat” elevated you jackwagon, it’s permanently elevated.
If the inflation rate does not remain above 3% for a sustained period, odds are the deflationary impulses will overwhelm not only the Fed’s ability to maintain any price stability, but it would create an environment where the US Government’s budget deficit will demand unlimited quantitative easing to sustain spending levels at the highest amounts they are pegged at now.
Today was a nothingburger. Trump screamed about this earlier today:
This highlights the major problem facing not only the Fed but American reality. Trump is either ignorant as to how the Fed Funds Rate works (most likely) or he doesn’t care and wants a hyperinflationist to assume the role as Fed Chairman and put our nation on the path to a debt solution via currency destruction.
Got gold?
