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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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