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:

12-Dec Fed Watch Repeat

12-Dec US Open

12-Dec EU Open

11-Dec US Close: Fiscal Cliff & FOMC

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Roundups and Commentary

News – Between The Hedges

Markets – Between The Hedges

Recap – Global Macro Trading

The Closer – alphaville / FT

Roundup: Fed Day Today – Kiron Sarkar / The Big Picture

Tomorrow’s Tape: Jobless Claims, Producer Prices – WSJ

Reference

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

EUROPE

Ministers hoping to bridge divide on EU banking supervision – euobserver

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 schemes – euobserver

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 it – Danske Bank (pdf)

UNITED STATES

Fed ties rate pledge to a threshold as new stimulus set – Reuters

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 Purchases – BB

The Fed Announces 'Evans Rule' — A Historic Change In Monetary Policy – BI

More Bond Buying and Thresholds – Tim Duy’s Fed Watch

FOMC Projections – Tim Duy’s Fed Watch

The Press Conference – Tim Duy’s Fed Watch

Monetary policy: Straight talk – Free exchange / The Economist

Monetary policy: Clearer now – Free exchange / The Economist

Fed makes new rate pledge and prints more money – Nordea

Huge news out of the Federal Reserve – Wonkblog / WP

Graph of the day: How the Fed became more dovish – Wonkblog / WP

More Fed Stimulus On the Way; Stocks Rise – WSJ

Clarity From the Fed, But No Course Change – WSJ

Flash Comment - US: Another step up in Fed easing – Danske Bank (pdf)

Fed Statement: A Change in Guidance? – PragCap

Fed’s numerical thresholds are a bad idea: Goldman’s Hatzius – MacroScope / Reuters

Special edition, Bernanke presser – alphaville / FT

Michael Woodford on the new Fed policy – Wonkblog / WP

Doves Rule at the FOMC – Marc to Market

Dove, actually (the sequel) 29-Nov – alphaville / FT

on the Evans-rule, an old piece

ASIA

Making Sense of North Korea’s Fireworks – The Diplomat

OTHER

Morning Briefing (Asia): FOMC Delivers As Expected – BNY 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 Markets – BI

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