After eight years of mostly dealing with crisis or its aftermath, Chairman Ben Bernanke will hand his successor a Federal Reserve steering a course toward more normal times.
As evidence of that, the Fed is expected to announce Wednesday afternoon that it will continue to taper its $75 billion a month bond-buying program by a second $10 billion, split evenly between mortgages and Treasury securities.
“We expect $10 billion tapering tomorrow [Wednesday] and $10 billion at each Fed meeting until the Oct. 29 Fed meeting, when the last reduction is expected to take place,” said Tony Crescenzi, senior portfolio manager at Pimco.
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