January Fed Minutes Are Out

It does seem to me that the Fed is clearly signaling that QE2 is the end of the road and perhaps we don't even fulfill QE2. Their justifications for an improving economy are just absurd, like the unemployment print of 9.8 to 9.0 in one month. It seems the data is being massaged to give the Fed a reason to get out.

Let me be clear, I don't believe these projections for a minute, it looks like the Fed is trying to say, "we've succeeded in our task, we are out now" and the truth is seemingly much deeper then this thinly veiled facade. Something is not right with the markets. Very strange things have occurred in treasuries, in the Fed's tone, PIMCOs reversal in their investment strategy and in a number of other ways. Without the Fed pushing prices up, this market could fall like a stone and with no underlying traditional liquidity structure, this could be a very nasty fall. Keep you ears open to what Fed officials are saying, none of it is arbitrary.

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