Analyst Note| Eric Compton, CFA |
In its latest statement, released on Nov. 3, the Federal Open Market Committee unsurprisingly held the federal-funds rate at 0.0%-0.25%. Nobody expected a change in rates at this meeting, instead tapering was the main focus. The Fed’s tapering announcement was in line with market expectations, a taper of $15 billion per month ($10 billion of treasuries, $5 billion of MBS), with room to adjust along the way. This baseline tapering should lead to the end of asset purchases by sometime in June.