October 30, 2013
To the surprise of virtually no one, the Federal Reserve kept its cheap-money policy in place, but markets interpreted language in the decision to mean that the end may come sooner than expected.
Wall Street had expected the Fed to refrain from tapering its so-called money printing operation. Economic data, particularly in employment and consumer confidence, has weakened over the past two months, giving the U.S. central bank cover to continue unabated.
Language in the October statement mirrored the “moderate pace” of economic improvement that the Fed saw at its last meeting in September.