Bernanke Gets Taper Call Right But the Fed Still Has No Rules
By Larry Kudlow
So Fed chairman Ben Bernanke finally pulled the taper trigger this week. And it was the right thing to do.
Stocks soared. And even with some back-and-forthing, gold, commodity indexes, and the dollar were basically stable. In other words, financial markets approved -- especially stocks, where investors believe Bernanke is telling them the economy is strong enough to weather a pullback in Fed bond buying. Actually, if the Fed shaves $10 billion in bond purchases at each of its next seven meetings, QE3 will end in October 2014 -- or perhaps sooner if the economy holds up.
Read more: http://www.realclearpolitics.com/articles/2013/12/21/bernanke_gets_taper_call_right_but_the_fed_still_has_no_rules_121032.html#ixzz2o7Zka8ys
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