Followed by this: the Fed said it was going to taper off QE, but then pulled an about face. Not even a reduction of the monthly, but keeping QE going at full-bore.
Chrome, I'd love to hear your opinion.
IMO, this does not mean things are good at all, and the knee-jerk stock market jump could be a sign of a market downturn to come.
Fed Announces Quantitative Easing Will Continue, S&P Hits Record High
By Patrick Brennan
September 18, 2013 2:08 PM
They didn’t call it QE Infinity for nothing: In a surprising move, the Federal Reserve announced this afternoon it won’t slow the pace of its quantitative-easing program, which purchases bonds on the open market. The committee said in its statement today that it had “decided to await more evidence that progress [in the economic recovery] will be sustained before adjusting the pace of its purchases.” Stocks, which have soared as this round of money printing has continued, declined significantly in June when Fed chairman Ben Bernanke indicated that he thought the pace of purchases would slow in the fall, but over the course of the summer, he tried to allay concerns about the coming restraint, noting that the schedule for “tapering” the program was based on the Fed’s often-optimistic forecast, and that labor market conditions were weaker than the unemployment rate indicated. That last issue was reinforced a couple weeks ago, when the August jobs report showed the unemployment rate had declined but the pace of job creation did too.