The WSJ's Sudeep Reddy posted a page 2 article today that stated the Fed had embarked on a 10B reduction in LSAP PER MEETING (my emphasis) until down to zero. That was not the interpretation I got from the Chairman at his last presser. The page 2 position and colored background of the story convinced me to follow up the "news."
I believe much more would have been made of the post if Hilsenrath was on the by-line but considering 2 other articles from the same page were widely discussed today (EU deflation and Slow growth trap), the location seemed intentional. I wondered if I was wrong - it may happen someday after all ! Or, had an incorrect line slipped by several editors? I also wondered why no one else was talking about this Monday morning "tape bomb."
I decided to stir the pot by contacting Jeff Cox at CNBC NetNet. He had not noticed the post but agreed with me that the information was not accurate. Through the magic of Twitter we "trolled" Sudeep about it and BINGO, he replied. Those in the stream can see the conversation. The reporter stood by his post. In fact, he sited the Chairman's answer to Steve Liesman's question as supporting. Again, I didn't "get that" message. Finally, the reported said, "Other FOMC members have said the same thing. It'll be clear in the Minutes on Wednesday." ( emphasis again mine)
There you have it. The real story of the day. And Wednesday, going into the Employment Report, we'll find out if Death by Chi Chi was the actual goodbye message from Bernanke. Who is The Contrarian Corner to ague with the great Wall Street Journal ? We have one word to say, CHALLENGE !