Investors react to the decision of the Federal Reserve
On Wednesday, The Federal Reserve had extended support for the slowing economy of the US. For the time being, Fed officials would continue in its pace of buying USD85 billion bonds per month.
The Federal Open Market Committee said, "Available data suggest that household spending and business fixed investment advanced, while the recovery in the housing sector slowed somewhat in recent months. Fiscal policy is restraining economic growth."
After the highly expected announcement, investors weighed in on the Fed officials' decision.
Miami-based Regional chief investment officer of Wells Fargo Private Bank Dave Roda said, "It was not outside expectations. The probability of any change in policy stance was low, the economic data hasn't been robust."
New York-based managing director of BK Asset Management Boris Schlossberg stated, "The fact that that the Fed took out the statement ion financial market tightness to me seems quasi-hawkish. The Fed is essentially hinting at the fact that they may taper sooner rather than later. Before the market was expecting tapering in March and now it could very well be December. The dollar is gaining as a result of this."