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The Fed Holds off on Tapering

Nearly everyone on Wall Street pretty much thought the Fed would do some sort of “tapering” of its current $85-billion-per-month bond buying scheme when it announced its decision on monetary policy today. Well, nearly everyone was wrong.

The Fed defied most expectations today and kept its foot on the monetary gas with no alteration to its current quantitative easing (QE) policy. Apparently, the central bank is still worried about a flailing economic recovery, including anemic job growth, mediocre gross domestic product (GDP) growth and the recent rise in interest rates.

The decision not to taper, at least at this month’s meeting, does not mean there won’t be any slowing going forward. The Fed still is likely to begin tapering at some point later this year. However, for equity bulls, bond bulls and commodity bulls, today’s unexpected move to keep the monetary pedal to the metal caused a lot of smiles on Wall Street.

To read my e-letter from last week’s Eagle Daily Investor, please click here. I also invite you to comment about my column in the space provided below my Eagle Daily Investor commentary.

Best,

Doug Fabian

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archive

The Fed Holds off on Tapering

Nearly everyone on Wall Street pretty much thought the Fed would do some sort of â??taperingâ?ť of its current $85-billion-per-month bond buying scheme when it announced its decision on monetary policy today. Well, nearly everyone was wrong.

Nearly everyone on Wall Street pretty much thought the Fed would do some sort of â??taperingâ?ť of its current $85-billion-per-month bond buying scheme when it announced its decision on monetary policy today. Well, nearly everyone was wrong.

The Fed defied most expectations today and kept its foot on the monetary gas with no alteration to its current quantitative easing (QE) policy. Apparently, the central bank is still worried about a flailing economic recovery, including anemic job growth, mediocre gross domestic product (GDP) growth and the recent rise in interest rates.

The decision not to taper, at least at this monthâ??s meeting, does not mean there wonâ??t be any slowing going forward. The Fed still is likely to begin tapering at some point later this year. However, for equity bulls, bond bulls and commodity bulls, todayâ??s unexpected move to keep the monetary pedal to the metal caused a lot of smiles on Wall Street.

To read my e-letter from last weekâ??s Eagle Daily Investor, please click here. I also invite you to comment about my column in the space provided below my Eagle Daily Investor commentary.

Best,

https://i2.wp.com/c15029670.r70.cf2.rackcdn.com/doug-fabian-signature.gif?w=740

Doug Fabian

Newsletter Signup.

Sign up to the Human Events newsletter

Written By

Doug Fabian is the editor of Successful Investing and High Monthly Income, and is the host of the syndicated radio show, "Doug Fabian's Wealth Strategies." Taking over the reigns from his dad, Dick Fabian, back in 1992, Doug has continued to uphold the reputation of the newsletter as the #1 risk-adjusted market timer as ranked by Hulbertâ??s Investment Digest. For more than 30 years, Successful Investing (formerly the Telephone Switch Newsletter) has produced double-digit annual gains. Doug has become known for his expert knowledge and timely use of innovative tools like Exchange Traded Funds, bear funds and Enhanced Index funds to profit in any market climate.

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