The Fed has spoken, and it‚??s more of the same from Chairman Ben Bernanke and his merry band of central bankers. The statement from today‚??s Federal Open Market Committee meeting was essentially the same as last month‚??s statement, with the Fed maintaining its current $85-billion-per-month bond buying program. No ‚??taper‚?Ě this time. Just the same, we didn‚??t get the much-anticipated taper in the September FOMC meeting.
Here‚??s the money quote from today‚??s Fed statement on just that subject:
‚??The Committee decided to await more evidence that progress will be sustained before adjusting the pace of its purchases.‚?Ě
The translation here is that the money spigot is going to be open for a lot longer. According to most market watchers, including me, do not expect to see any kind of tapering until the spring of 2014.
What does this situation mean for the markets?
Read more about the Fed’s easy money decision and how it impacts the markets on Eagle Daily Investor.