Due to an economy that is clearly faltering, the Fed decided to NOT taper QE. In its Statement of Economic Projections (SEP), the Fed downgraded its economic outlook. The Fed reduced its GDP estimate to 2.0%-2.3% from 2.3-2.6% . Street GDP estimates are sub 2%. Ben sees economic headwinds prevailing through 2016. There is no other spin. The US economy is teetering; consumers are still suffering; so the Fed will maintain QE even though it is ineffective. The Fed’s thinking is: QE is ineffective but the economy would be worse without it.
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