Taper Talk Tailspin Turns into Massive Rally

by Marilou Long on December 18, 2013

in Credit Crisis,Economic Indicators,Employment,Fed policy,interest rates

Only 30% of market watchers expected the Federal Reserve to begin to taper, or withdraw a portion of its monthly bond buying program.  Recent economic data has been better than expected, and we noticed a week ago that good economic news was beginning to be positive for the market.  In the recent past, any decent data that might cause the Fed to taper was viewed as negative.  I don’t have the exact quote from one of the commentators on CNBC today, but it was something like “The Fed is removing liquidity and injecting confidence.”  I think this perfectly describes the market action we saw today.

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