All eyes were on the Fed's FOMC statement on Wednesday...

All eyes were on the Fed's FOMC statement on Wednesday as if it meant anything. In reality, the statement was irrelevant for the simple reason that no one can possibly believe a thing the committee says. The Action: The Fed cut by 1/4 point in spite of a GDP that came in as a surprise. The Reaction: The dollar sank, oil and gold hit new highs. Those stuck in ARMs did not benefit at all. Mortgage rates are still higher than they were a year ago in spite of a total of 75 basis points (.75%) cuts by the Fed and an additional 50 basis point (.50%) cut in the discount rate. The stock market gyrated wildly but settled pretty much where it was before the announcement. The sad thing is that no one can possibly believe the reasons the Fed gives for what it does. The Fed seems more inclined to wordsmith what the market expects rather than do what needs to be done. Reasons can be made up along the way. It's pretty clear that's exactly what happen. So much for transparency. The committee did manage one dissenting vote. Here's what I want to know: Was there a volunteer or did Thomas M. Hoenig draw the short straw? For the record: I am in gold and a libor based mortgage. Both benefited from today's action. I do not think the Fed should have cut. Is It Two and Done? Curve Watchers Anonymous was watching the action today and here is the top question on their collective minds: Is It Two and Done? The following FOMC Probabilities Chart will show the basis of the question. click on chart for a sharper imageThe odds of rate cuts in December plunged immediately on the FOMC announcement. Was this because of the cleverly arranged short straw dissent? Who knows? What we do know is that the market will forget all about Wednesday as soon as Thursday. On Thursday will come the weekly unemployment numbers on Friday will come the monthly jobs report. Payroll PlaybookIf the jobs numbers are bad, the odds of a rate cut in December will again rise. In reaction, the dollar will likely be under pressure, and gold will likely find a bid. In short order, everyone will have long forgotten about Thomas M. Hoenig and the irrelevance of the latest FOMC statement. Numbers That MatterThere are some numbers that matter. Happenings in commercial real estate are at the top of the list. I will get to commercial real estate early next week but for now let's concentrate on housing vacancies. I talked about housing vacancies in Pent Up Housing Supply. The numbers seem so unreal that some have questioned them. Professor Eugene Linden is also on the case. He is writing about An Underappreciated Housing Number.