US Fed tapers another $10 Billion to $65 Billion a month.

Ben Bernanke released his last monetary policy statement Wednesday before he retires at the end of the month and he left the market with no doubt on what the US Fed ultimately wants to do. The US Federal Reserve Committee unanimously voted at its meeting this week to reduce the stimulus program by another $10 Billion in February bringing the monthly stimulus program back to $65 Billion. In December the Fed announced it would reduce the stimulus by $10 Billion and Wednesday's decision to reduce this by another $10 Billion, making the total reduction now $20 Billion sends a clear message to the market the Fed is now fully committed to winding back the entire stimulus from $85 Billion as it sees the US economy steadily becoming more self sufficient.

Review the latest from the LTG GoldRock Team on www.LTGGoldRock.com

 

What does this really mean Mr Bernanke?

"It might well be appropriate to offset the effects of reduced purchases by undertaking alternative actions to provide accommodation at the same time." This is what Ben Bernanke said in the recently released US Fed minutes. He went on to say, "we are somewhat less certain about the magnitudes of the effects on financial conditions and the economy of changes in the pace of purchases or in the accumulated stock of assets on the Fed's balance sheet."

What you really mean Mr Bernanke is that you aren't really sure if the stimulus is having the desired affect any longer; you are leaving office in January and seeing you started the now Trillion dollar Quantitative "Magic Money Printing" Easing Program you'd like to at least start to reduce it before you leave. Would you like to leave a path for others to follow Mr Bernanke? A little legacy perhaps of being the Chairman to start to wind back what you started? Me thinks so…and it won't surprise me if a $10 Billion reduction happens starting in December.

LTG GoldRock Co-Founder and Senior Trade +Andrew Barnett  discusses the latest in the Forex News in this LTG GoldRock Review.