Uncle Ben left some big shoes to fill as the market usually responded well to his comments and his QE (quantitative easing) efforts. It remains to be seen how Aunt Janet’s first year plays out but she did the bulls no favors by going off script a little from the normal Fed rhetoric.
The zombies announced a $10 billion cut in the monthly QE bond purchases, as Wall Street expected, but the bears took control when the interest rate projections were moved forward.
The Chairwoman got a golf clap from us as she looked poised and composed throughout her update but she hiccuped when asked about rising interest rates down the road.
The Fed’s forecast now puts interest rates at 1% by the end of 2015, and over 2% by 2016. The unemployment rate target of 6.5% before rates were forecasted to be hiked was also ditched, as expected. (continued…)
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