Happy first day of November! Time is flying by these days! Today’s post will be short and sweet.
On Monday we talked about the upcoming two-day Federal Open Market Committee (FOMC) meeting planned for this week. September’s meeting shocked many when the Fed announced they were not going to begin tapering their bond-buying program. This month, economists predicted more of the same–and that’s what they got.
The Fed announced that they will not begin tapering now, citing a weakness in the economy partially due to the government shutdown, a slow down in the housing market recovery over the last few months, and the sluggish pace of the labor market. Many economists are now predicting we won’t see the taper until spring of 2014.
The Fed also stated that they will keep interest rates where they are until the unemployment rate drops below 6.5% and inflation doesn’t forewarn a rise over 2.5%.
We’ll see what the coming months bring. Have a great weekend!
[Info for today’s post from Reuters]