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Fed tapers QE by another $10 billion

As it was widely expected, the US Federal Reserve cut bond-buying program (QE) by $10 billion for a fifth straight meeting, to $35 billion, keeping it on pace to end the program late this year. Interest rates were left at a record low of 0-0.25%. The Fed repeated that the interest rates will likely remain low for a considerable time after the QE ends. 

According to the FOMC statement, growth in economic activity has rebounded in recent months and the labor market has shown further improvement. The statement highlights the decline of the unemployment rate, but still sees it as elevated. 

Meanwhile, the 2014 GDP growth forecast was revised down from 2.8-3.0% to 2.1-2.3%. The forecast cut was priced in, however. The 2014 inflation forecast was revised up a bit.  

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