Stocks, Treasuries Fall and Dollar Gains on Fed Minutes (Bloomberg)
Meeting minutes from the U.S. Federal Reserve signaled stimulus tapering will most likely continue in measured steps, while the International Monetary Fund urged caution regarding risks to worldwide growth. As a result, the U.S. dollar rose today, and stocks and treasuries fell. “So far tapering seems to be orderly and they [the Fed] seem to be committed to it,” Erik Davidson, the San Francisco-based deputy chief investment officer for Wells Fargo Private Bank, said. “While it is data-dependent, it is long-term data dependent, certainly not short-term, noise data-dependent. Investors should recognize that this is the beginning of a very very very long process.”
