T/A ETF AND INDEX

[POKERSAM]

Capt - The Fed said it would buy 300 billion in treasuries by the end of August. They have not purchased all 300 billion. They only stretched the time limit out one month, they did not add any money to it. This 300 billion has been known for months.
The Fed simply said it was slowing its purchases.
They are hoping the economy will improve giving them an op to exit.
One thing we know about oil and gas prices. They will fluctuate. Higher gas prices will only cause more deflation in every other area. It will decrease demand elsewhere and hence the deflationary spiral continues.
As long as deleveraging continues there will be no inflation. Leveraging must take place to multiply money.
The biggest problem the Fed has is deflation and they know it. There is just nothing they can do about it. They cannot increase demand. It is just as simple as supply and demand.
"Don't fight the Fed" had to do with interest rates. The Fed can do nothing about that now either. The only direction they have left is up. Knowing what that would do to the economy they have said they will not do it for perhaps another year. Rates are rising and the market is doing it in spite of the Fed. Not a good thing. The Fed is impotent in my opinion. Full of sound and fury signifying nothing.