On top of those reports, Tuesday’s decision by the Fed to begin buying at least $10 billion a month in new Treasury securities caught some traders off-guard.They shoulda been reading their EFFLS, and they'd have known in advance that's what the Fed was going to do...
Also, interestingly, the NYT has changed its story. Yesterday, the "surprise" announcement by the Fed led to a market rally, today yesterday's QE has caused the market to drop a lot by inciting economic fears. Hard to believe both are true. Nevertheless, I can see where both stories are coming from. It's a good thing the Fed isn't shrinking its balance sheet. But keeping its balance sheet the same size does nothing to stimulate the economy...
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