Well, it was bound to happen. After five years of propping up the markets with its bond buying, the Federal Reserve is finally putting a stop to its quantitative easing (QE) programs. The Fed began buying long-dated and mortgage-backed securities in an effort to keep interest rates down and stimulate economic growth, but soon it will all be over. While you can debate the effectiveness of the program, it has been seen as one of the major drivers of recent stock market gains. It’s a big deal that Yellen and crew have decided to end the program in October. Here’s Binyamin Appelbaum at The New York Times with the scoop.
Bankrate (Chris Kissell): Maybe the Fed actually saved the economy and did the right thing. A new study indicates as much.
The Wall Street Journal’s Real Time Economics (Pedro Nicolaci da Costa): The real Fed fight is over inflation. It’s the Hawks vs. The Doves.
Tim Duy’s Fed Watch (Tim Duy): Despite all the talk, the Fed is really waiting to see how the economy’s data evolves. Translation: Everything is still up in the air — even keeping QE going.
Sober Look (Staff): The real problem for the Fed may not be inflation, but a mismatch of skills and labor.
Bespoke Investment Group (Staff): Stocks and bonds rising on the Fed’s decision? The correlations are getting closer. But that’s not supposed to happen.
Vanguard Blog for Advisors (Fran Kinniry): Why trying to gauge the Fed is a fool’s game. Don’t focus on forecasts, just think long-term when you build your portfolio.
BloombergView (Megan McArdle): Economists loved Uber. But not anymore. See ya later surge pricing and efficient market theory.
TechCrunch (Ryan Lawler): Maybe they’ll love rival Lyft. The pink-mustached cars are coming to New York.
Market Watch (Jeff Reeves): Start raising cash to buy and get ready for the 10% drop in stock prices. Here are seven reasons why.