The Fed Leaves in ‘Considerable Time’

The Fed served up more of the same today, as Chair Janet Yellen and company kept interest rates near zero while also continuing the Fed’s taper of quantitative easing. More importantly, the Fed left in the rather dovish language that says the Federal Open Market Committee (FOMC) would keep interest rates low for a “considerable time.”

After initial trading volatility in the minutes following the Fed announcement, stocks basically crept modestly higher on the news. Interest rates (bond yields) also saw a modest up move immediately following the FOMC announcement, but as of this writing, the interest rates were basically unchanged.

So, how will this movie end? What’s going to happen when quantitative easing ceases and when interest rates begin to rise?

While it’s still too early to tell, one thing that’s almost certain based on today’s Fed verbiage is that we aren’t likely to have to grapple with any real change until well into 2015.