Fed Chair Janet Yellen announced that bond buying will be relaxed by the end of the month, given some strength in the economy, most notably, positive job numbers, as reported by the New York Times. The Fed stated, “The underutilization of the job market is gradually diminishing.”
This wasn’t unexpected, but stocks usually fall on news that the Fed is backing off form QE. Some Wall Street bulls dismissed more positive job numbers by saying real wages hadn’t increased and global insecurity would be reasons for the Fed to continue its bond buying. However, Janet Yellen said interest rates would still remain close to zero for some time. So far though, the indexes don’t seem to have tanked on the announcement, perhaps because of the stated commitment to keep interest rates low.