The Economic Data Has Nothing To Do With It

Wall Street expects the Federal Reserve to announce the first reduction in the pace of monthly bond purchases it makes under its quantitative easing (QE) program at the conclusion of its FOMC monetary policy meeting Wednesday.

Right now, the Fed buys $45 billion in U.S. Treasuries and $40 billion in mortgage-backed securities each month – $85 billion of bonds in total – in a bid to stimulate the American economy. The consensus on the Street is that the Fed’s first “tapering” of QE will consist of a $10 billion reduction in monthly purchases, bringing the monthly total to $75 billion.

….more commentary on Frothy Markets, Effectiveness of QE, Bernanke’s Legacy, Fed Credibility & A Shrinking Deficit HERE