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

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.