The US Federal Reserve sparked a global – and now month-long – guessing game with its decision on 18 September not to "taper" its monthly purchases of long-term securities.
However, a larger-than-expected move could still cause ripples – and a decision not to taper at all would be a shock, though some analysts believe it remains a possibility.
Both quotes via Reuters Updated at 5.02pm BST 4.23pm BST To taper or not to taper Matt Basi at CMC Markets, writing before the US jobs and inflation data was published, is a voice of calm amid the sell-off that is underway.
In fact, what actually triggered the policy shift was a particularly obvious bit of early trading that occurred in September of last year; gold instruments began moving a few milliseconds early, indicating that someone had gotten wind of the decision (not to taper as expected) beforehand.
Gradually taper the bricks as you build upward, careful not to taper too much (see Warnings below).
The bad news is that the decision not to taper is unlikely to put either the Fed or the economy in a better place, confronting Yellen with a difficult task when she begins her historic tenure.
