NEW YORK ( TheStreet) -- The Fed announced it would continue to taper its bond buying despite much weaker-than-expected economic growth. And, to the surprise of many on StockTwits.com, the markets didn't shudder.
The $10 billion taper is largely what economists expected and showed that the Federal Reserve would not change policy because of a single quarter of poor economic growth. The government released advance GDP figures this morning that showed the economy grew an anemic 0.1%, far less than the 1.1% expected.
Earlier this year, Federal Reserve Chair Janet Yellen said the Fed did not have a timetable for exiting the stimulus program known as quantitative easing -- despite reports that the Fed plans to keep cutting billions a month from its bond purchases with the goal of finishing QE at the end of the year. Yellen has also said the Fed will keep benchmark interest rates near all-time lows well after unemployment falls below 6.5%, its initial target.
For a Fed taper that's not on a preset course, this taper sure looks to be on a preset course.? Neo (@Loyola80) Apr. 30 at 02:33 PM
Amazing that the Fed used an employment target and then had to drop it because it was fake/useless data with no bearing on reality. $$