Predictable Policy

yellenTomorrow the Fed will announce that tapering has ended, closing the books on QE3 which began in late 2012. Therefore, the carefully scrutinized policy statement they release will change. However, it will still include the phrase “…maintain the current target range for the federal funds rate for a considerable time…” Altering the phrase “considerable time” now would needlessly disrupt bond markets and raise rates. They can change it in December.

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