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Fed Stops Printing Press-Market Caught Napping
The Fed ended QE3 as expected, but has caught the market off guard with a definite “hawkish” tint in the statement delivered yesterday. Technically, the FOMC has finally closed the door on QE with the $15b taper; however, never say never as bookies are already making odds that the central bank could crank up a new bond-buying program to take its place if the US economy happens to turn south once again. Despite US policy makers retaining the “considerable time” language, the statement released was deemed increasingly “less” dovish by the market, as it noted further improvement in “labor market conditions ... (full story)