Fed Gets it Right

Did the Federal Reserve finally get the taper right? Former New York Fed Governor Frederic Mishkin says yes.

The U.S. central bank announced Wednesday it would start tapering its bond-buying program by $10 billion to $75 billion a month. The move came as a surprise to some investors but reflected signs of confidence in an improving economy. Both the Dow and the S&P 500 surged to record-high levels in response to the news, with the Dow adding almost 300 points on the day.

“This is a very good outcome,” Mishkin said on CNBC’s “The Kudlow Report.” “They basically decreased uncertainty. They also made it very clear that tapering does not mean a tightening of policy.”

CNBC

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