International Economic and Market Overview December 2013
The Federal Reserve surprised many investors in mid-December by announcing that it would reduce its asset purchase program and begin “tapering” from January 2014. Initially it will reduce purchases by only $10bn, reducing the $85 billion-a-month program to $75bn per month. Further reductions will be in “measured steps,” provided that the U.S. economy remains on track. More importantly, Ben Bernanke sought to reassure the market that short-term interest rates would remain low “well past the time that unemployment rate declines below 6.5%, especially if projected inflation continues to run below the Committee’s 2% longer-run goal.” 12_2013_CFAL_International_Economic_and_Market_Overview-1 Click here for full International Market Overview

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