As we've long said, the Fed has put itself in a box
Wednesday, September 18, 2013, 4:20 PM
The Federal Reserve today (9/18/13) surprised the world, and me, too, by not reducing the amount of bond purchases from the current $85 billion per month to something less. The guesses and expectations were for between $10 billion and $15 billion less per month, to bring the number down to "only" $70 to $75 billion per month.
But the actual reduction was $0, leaving the purchases at $85 billion per month.
The financial markets reacted instantly. » Read more