Chicago Fed's Evans Unveils Federal Reserve's 2014 Year-End S&P 500 Price Target

Minutes ago, the Chicago Fed's Charlie Evans went dove-retard and tongue-in-cheekly announced that QEternity may have to be increased by 50% in the coming year!

Ignore the fact that the US deficit will be less than half this number in the coming year. More importantly, based on what everyone now knows is the only driver of US equity "market" performance, the Fed is implicitly announcing its 2014-year-end target for the S&P 500 of 2,220 - so BTFATH (because it's the fundamentals that matter).

Of course, the question is what happens when the Fed owns the entire Treasury and MBS market? Obviously, nothing bad. Or maybe something, because recall that currently the Fed is monetizing 0.3% of all 10 year equivalents per week, 15% per year. It currently hold 33% of the bond market. Should it hike QEternity by 50%, it means the Fed will own a ridiculous 57% of the entire bond market in 10Y equivalents on December 31, 2014.

And that is how reserve currency status is lost.