Markets taken by surprise by Fed inaction

by: Han de Jong

Big picture - 23 September 2013 - Markets taken by surprise by Fed inaction ()
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The decision of the US Federal Reserve not to start tapering its bond purchases took markets by surprise. It raises some important questions, though despite all the excitement, we do not think all that much has changed. Indeed, tapering is not a matter of if, but of when. We now expect the Fed to start scaling back its asset purchase programmes during the December meeting.