Update on the FOMC Statement - Analyst Blog


Shutterstock photo

The Fed finally showed some guts and started the taper on the QE bond buying program. It will reduce its bond purchases by $10 billion to $75 billion starting in January.

The Fed said the taper was not on a pre-set course, meaning that it does not necessarily intend to taper every month and at every meeting. The continuation of the taper will depend on the economic data.

The bond market was calm in the face of the announcement but 10-year yields had already risen in anticipation of the possibility of a taper. It was already priced in.

SPDR-DJ IND AVG (DIA): ETF Research Reports

ISHARS-R 2000 (IWM): ETF Research Reports

SPDR-SP 500 TR (SPY): ETF Research Reports

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Stocks
More Headlines for: DIA , IWM , SPY

More from Zacks.com




Equity Research
Follow on:

Find a Credit Card

Select a credit card product by:
Select an offer:
Data Provided by BankRate.com