Don’t rock the boat! The Federal Reserve announced Wednesday that it will not begin to taper its $85 billion a month bond buying program. The move did not come as a surprise to markets, which barely budged after the announcement. The announcement demonstrated a lack of certainty on the part of the Fed that the U.S. economy will continue to grow without help–particularly after the government shutdown, sequestration, and debt ceiling scare. The Fed also pointed to the recent slowdown in the once-hot housing market. Inflation also remained stubbornly below the two percent annual increase deemed healthy.
STEADY Alex Wong