Fed starts the scale back

veryintrigued

Little impact on the DJ:

http://www.bbc.co.uk/news/business-25436982

grizzly1911

Markets React in Stride

Despite the obsession in recent weeks over prospects for the taper, Wall Street seems to be taking the news of a mini-taper Wednesday in stride. At 2:10, the Standard & Poor’s 500-stock index was up 0.7 percent, while the Nasdaq reversed an earlier loss and was up 0.2 percent.
— Nelson D. Schwartz

2:12 P.M.A Tiny Taper


That’s one tiny taper.
The Federal Reserve is taking its foot off the accelerator ever so slightly here: It is reducing its pace of asset purchases from $85 billion a month to $75 billion. It currently is holding about $4 trillion in assets total. And the Fed remains far from tapping the break – either by raising interest rates, or by selling assets.


http://economix.blogs.nytimes.com/2013/12/18/live-updates-on-bernanke-and-the-fed/?ref=quantitativeeasing&_r=0


Already priced in?

pip895

It will be interesting to see if the Asian markets will be so sanguine about it.

block10

Of particular relevance to us savers, the Fed promised low interest rates “well past the time that the unemployment rate declines below 6.5 per cent”.

The Bank of England will probably follow a similar policy of low interest rates for the foreseeable future.

gadgetmind

Priced in since May, or even earlier.

pip895

DJ now 1.8% up - obviously more than $10b drop already priced in.