Thursday, December 19, 2013

Money to tighten after the first, Fed Chairman says

New York – Wall Street “roared its approval,” according to AP reports, as outgoing Fed Chairman Ben Bernanke announced in his final press conference that the dreaded day of an easing of “quanititative easing” has arrived.

After January 1, the Federal Reserve will diminsh its $85 billion per month purchases of U.S. Treasury Bonds to $10 billion due to a brightening economic picture.

The Dow Jones Industrial Average soared nearly 300 points on the news as bond prices fluctuated; by mid-afternoon, the yield on benchmark 10-year Treasury Bons had “barely moved,” up at 2.89 percent.

One need only click here for a in-depth report from the South China Morning Post.

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