Market’s Fed Frenzy Can Finally End
Global CIO Commentary by Scott Minerd
Maybe now the Fed Frenzy can end. After months of market jitters about when the Federal Reserve would start tapering quantitative easing, we now know the central bank will trim its asset purchases by $10 billion monthly, starting in January. As I wrote previously, whether the Fed tapered now or in a few months would make little difference to the big economic picture. The change of Fed policy, the swan song for outgoing Chairman Ben Bernanke, is based on the belief that the U.S. economy’s expansion is sustainable and that the labor market is improving amid muted inflationary pressures. The Fed’s statement after its two-day meeting was exceptionally dovish. Read More.