No Tapering: US Markets Rally!

Sep 18, 2013, (Update:  3:01pm EDT)

Latest: Ben Bernanke said, “tied to data on taper, not timing”

So, if data points to recovery in next two-three weeks, taper will happen? (probably without talks).

Latest: The Fed Chief, Bernanke said “We can’t let market expectations dictate our policy actions.”

Hmmm… expect more action from “helicopter Ben” in future 🙂

Earlier:

Okay, guys, I don’t know what you make of Ben Bernanke’s sweet talk, but today, he is dropping such sugar coated anti-tapering comments that I suspect he is just sending markets off the track and will announce tapering when no one is expecting it!

One thing has become clear about the current Fed chief, he does NOT like to do anything under pressure.

He had talked about tapering when no one was expecting it. And he has refused to start tapering when everyone was expecting it!

(now you know why I’m such a bug fan of Ben Bernanke, he is whimsical just like me *hehe*)

Latest: The Fed chairman Bernanke said, “there is no fixed calendar for tapering.” Dow Jones surged some more on this “encouraging” comment from “helicopter Ben” (today he sounds more like “jet Ben”*hehe*).

When he was asked, why he talked about tapering in June if the Fed was not satisfied with progress, Bernanke said, “we had made meaningful progress in June.”

My translations?

He was just getting back at President Obama in June by roiling markets through his tapering comments. And today, he is talking more like a shrewd politician than a central banker!

Lesson? Never underestimate a central banker 🙂

Earlier:

Bernanke not leaving???!!!!

The Fed Chairman Ben Bernanke was just asked if he is leaving (the post), and he replied- “I prefer not to talk about my plans at this time.”

This is the best line from him ! (at least for me *hehe*).

Earlier:  No tapering now also means, too much volatility will be back in markets every week with every jobs or employment report.

More importantly,  now, whenever the Fed starts reduction in QE3, it will have to be done in bigger chunks than what was expected this time.

Earlier: The U.S. Federal Reserve has decided NOT to start tapering in its QE3 program this month.

No change either in the Fed’s interest rates.

Equity indexes and Gold have jumped up. The Dollar index is down.

(now you know why markets had been rallying since last week. Especially emerging markets like India :))

Commodities zoom, Gold up by more than 2%, U.S. bonds jump up.

Dow Jones goes up, then comes down. Hmmm… something is up with equity indexes.

Now, to wait for The Fed chief’s press conference.

(earlier: 9:15AM EDT)

Welcome to the most awaited session of the year in U.S. markets!

If I sing any more praise of the Fed chief Ben Bernanke, I might upset President Obama! (ha ha :))

As a true-blue fan of the Fed chief, I had been waiting, like the rest of the financial world, for today’s session for many months now.

The U.S. Federal Reserves’ two-day meeting comes to an end today and at 2 PM EDT, the Fed will release a statement about its short term monetary policy. Will it contain the “T” word? To know that, wait for a few more hours.

Going by various reports, markets are expecting only $10 billion reduction in the Fed’s $85 billion monthly bond-purchase (or stimulus) program. Any reduction more than this limit is expected to disappoint markets.

Although equity markets have been holding their “top of the current range” places, but Gold and bond markets have turned negative on tapering fears. (tapering fears? Ask bears, they LOVE tapering *hehe*).

Expect U.S. markets to remain range bound till the Fed makes its intentions clear at 2 PM EDT today.

As always, we’ll be covering the Fed’s meeting and the Fed chief Ben Bernanke’s press conference LIVE!!

So please come back and join the fun, frolic and volatile reaction of markets at that time.

Till then, have fun, enjoy the day and have a great session in markets today!

See you soon.

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