- The Fed is sending a message that the unwinding of its extraordinary accommodation will be done with great care and patience, and will take time – a long time.
- In delaying a taper, not only did the Fed show markets it has little tolerance for any tightening of financial conditions, it also strengthened its forward guidance considerably.
- The Fed’s decision to delay a taper will likely relieve some of the upward pressure on longer-term interest rates. Report