The Fed Taper

The Fed 'finally' taper to the tune of $10 billion. Many economists now think that they will continue to taper and end QE in 2014. In my opinion, this is impossible. Technically, they may end "QE" but they will start another program with another name. The money-printing still goes on. Many think the Fed's policies are about improving the economy, but that's not the priority at all. It's about the bond market. It's about propping the government and big financial institutions up. As I mentioned before, the Fed will use the "low" inflation rate and the unemployment rate as an excuse to continue printing. Ben did exactly this in his press conference 3 days ago. I suspect they will continue to tout the "low" inflation rate and unsatisfactory unemployment rate as an excuse in future meetings. As I've mentioned before, the Fed may start to taper but the pain will be too great further down the road, and they will be back with more QE again. Ben emphasized that monetary policy will continue to be highly accommodative till 2015. Interest rate will remain at rock-bottom zero. First, it was 2013. Then it was 2014. Now it's 2015. What next? Will Ben really taper come January? That remains to be seen.