One QE door closes, another one opens

Stocks around the world rocketed higher on the Bank of Japan’s surprise Friday announcement that it will increase its QE bond buying program. The BOJ will increase the monetary base, expand the size of Quantitative Easing by up to one-third and extend QE’s reach from government bonds to stocks and real estate funds. Except for gold and crude oil futures and the Japanese yen, all of which hit multi-year lows, most securities and asset classes were flashing green on traders’ screens today.
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Fed pulls back ever so slightly on its monetary throttle

The Federal Reserve’s Open Market Committee did as markets expected today, sticking a fork in its asset purchase program and declaring that QE-3 is done. But just as the FOMC changed its mind on ending earlier versions of QE, it may discover the need for a QE-4 should economic data turn problematic down the road. The Committee today also reaffirmed its view that the 0%-0.25% target range for the federal funds rate will likely be appropriate “for a considerable time.”
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