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.”
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