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The U.S. Fed's FOMC decision to continue monthly tapering of bond purchases by $10 billion in Jan 2014

01/29/2014

The decision to continue tapering was made as emerging market currencies in Turkey and Argentina were driven down on currency markets in Jan. 2013. The loss of value for the Turkish lira was attributed to political uncertainty and large current account deficit. In Argentina the loss of value for the peso was attributed to high inflation of over 20% annually. The Fed's Open Market Committee continued gradual tapering to present a clear and consistent signal to financial markets.

Grouped Articles

Citing Growth, Fed Again Cuts Monthly Bond Purchases

New York Times 01.29.2014

Inflation Below Fed Target for 22nd Month in a Row

Wall Street Journal 03.29.2014


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