By: Tom Gentile
on November 3rd, 2021
The Fed announced that they will likely start tapering later this month.
That was an announcement many already expected so that really came off as a no big deal situation. The markets do not like surprises and that clearly WASN’T a surprise.
They are still going to be pumping money into the economy, let’s not forget that. They will just be doing so at reductions of $15 billion each month — $10 billion in Treasury’s and $5 billion in mortgage-backed securities. They also said they will adjust that number as the data shows is needed.
They also said they will not make a decision on interest rates at this time…
All this resulted in the markets acting in a bullish fashion the remainder of the day. And near as one can tell the bull run can continue to run even longer.