Tony Crescenzi, Executive Vice President, Market Strategist, and portfolio manager at Pimco, discusses today's Fed meeting and what investors should be aware of.
Today’s the day: the world will find out if – and by how much – the Federal Reserve Bank will taper its $85 billion per month bond-buying program known as “quantitative easing” (“QE”). And, we talk numbers with a portfolio manager at the world’s largest bond fund to find out what we should expect this afternoon.
Of course, word of any tapering won’t come as a surprise. The market has been getting ready for it since May. That was when Chairman Ben Bernanke told the US Congress that the Fed would consider tapering (the media’s term, not his) the QE program should economic data improve. For the past several years, the Fed has been buying US Treasury and mortgage bonds to add dollars into the financial system and simultaneously lower interest rates.
As bond prices moveRead More »from Pimco: Forget taper, watch this