As I have been saying, it sounds like the F_E_D is REALLY trying to decide whether further purchases are worth the economic gains, this is because exiting policy is VERY difficult, VERY painful, the bigger their balance sheet, the more painful it becomes.
The F_E_D has HINTED that they are considering this if you read between the lines, this time they came right out and said it with words along the lines of "efficacy and cost of purchases", in other words, whether the cost of additional purchases on the exit policy are worth any potential economic games.
Since the F_E_D really hasn't been able to do anything for the economy as we recently saw a Q4 negative GDP print which was revised to +.1, which they know, I think the market takes this harder than most people would think. Give it some time, we have to go through the knee-jerk.
5 years ago
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