July 15th, 2013
On June 19th, Bernanke announced that there could be a tapering of the bond buying program by the end of the year. The resulting action was selling in both the equity and bond markets, sending most bond fund to negative performance figures for the quarter and many for the year to date. Disturbed by this market reaction, the FED governors began making comments to attempt to ease investor concerns, and on July 7th, Bernanke added his own comments that the FED would continue its bond buying program for the foreseeable future and that there were no plans of tapering unless the economy continued to improve. The markets then reacted positively to Bernanke’s comments. Bernanke reminded the markets last week that the inflation and unemployment mandates are likely not the only targets where the FED has its watchful eye. Asset price stability appears to be a priority of the FED, as well. Click here to read the full article which is in line with our thoughts of what is happening at the FED.
For more information please, contact Scott Craig or call 770.396.2200.