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Thursday, December 13

12th Dec - US Close: Evans to Rule

Looks like both the US and UK are changing their central banks’ course. US  unemployment 6.5% or below, as long as inflation stays below 2.5% (that's news - old ceiling target was 2%)

It seems like "the printings shall continue until the employment improves"

Quote of the Day:
If I was able to ask Ben Bernanke a question at today’s press conference, I would ask this: What in your models make you believe that GDP growth can accelerate to a range of 2.3-3% in 2013, 3-3.5% in 2014 and 3-3.7% in 2015 from 1.7-1.8% in 2012 but somehow forecast that PCE inflation will be no greater than 2% in each of those years vs 1.6-1.7% in 2012 in light of the massive expansion in your balance sheet? – The Big Picture

Previously on MoreLiver’s:

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Roundups and Commentary
Markets – Between The Hedges
The Closer – alphaville / FT

Roundup: Fed Day Today – Kiron Sarkar / The Big Picture
Tomorrow’s Tape: Jobless Claims, Producer Prices – WSJ

Debt crisis live – The Telegraph
The Euro Crisis Blog – WSJ
Tracking Europe’s Debt Crisis – NYT
FX Options Analytics – Saxo Bank
European 10yr Yields and Spreads – MTS indices
Economic Calendar – Forexpros

Ministers hoping to bridge divide on EU banking supervisioneuobserver
EU finance ministers are meeting Wednesday afternoon (12 December) in a bid to reach a deal on rules making the European Central Bank the single supervisor of the eurozone banking sector.

Germany to EU: stop talking about new budget schemeseuobserver
German officials are in eye-rolling mode ahead of an EU summit about plans to create a eurozone "shock absorption fund" and say leaders should focus on reforms and stick to their promises.

Research UK: NGDP level targeting in the UK – don’t ignore itDanske Bank (pdf)

Fed ties rate pledge to a threshold as new stimulus setReuters
The Federal Reserve, announcing a new round of monetary stimulus, took the unprecedented step on Wednesday of indicating interest rates would remain near zero until unemployment falls to at least 6.5 percent.

Fed Boosts QE With $45 Billion in Monthly Treasury PurchasesBB

The Fed Announces 'Evans Rule' — A Historic Change In Monetary PolicyBI

More Bond Buying and ThresholdsTim Duy’s Fed Watch

FOMC ProjectionsTim Duy’s Fed Watch

The Press ConferenceTim Duy’s Fed Watch

Monetary policy: Straight talkFree exchange / The Economist

Monetary policy: Clearer nowFree exchange / The Economist
Fed makes new rate pledge and prints more moneyNordea

Huge news out of the Federal ReserveWonkblog / WP

Graph of the day: How the Fed became more dovishWonkblog / WP

More Fed Stimulus On the Way; Stocks RiseWSJ

Clarity From the Fed, But No Course ChangeWSJ

Flash Comment - US: Another step up in Fed easingDanske Bank (pdf)

Fed Statement: A Change in Guidance?PragCap

Fed’s numerical thresholds are a bad idea: Goldman’s HatziusMacroScope / Reuters

Special edition, Bernanke presseralphaville / FT

Michael Woodford on the new Fed policyWonkblog / WP

Doves Rule at the FOMCMarc to Market

Dove, actually (the sequel) 29-Nov – alphaville / FT
on the Evans-rule, an old piece

Making Sense of North Korea’s FireworksThe Diplomat

Morning Briefing (Asia): FOMC Delivers As ExpectedBNY Mellon
Putting two and two together may just possibly equal a sustained rise in USD/JPY in early 2013 and beyond

RAY DALIO: The US Economy Is Facing A Rare Set Of Circumstances That Will Be Bad For MarketsBI

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