By Michael Snyder
Will this be the year when the Fed’s quantitative easing program finally ends? For a long time, many analysts were proclaiming that the Fed would never taper. But then it started happening. Then a lot of them started talking about how “the untaper” was right around the corner. That hasn’t happened either. It looks like that under Janet Yellen the Fed is quite determined to bring the quantitative easing program to a close by the end of this year. Up until now, the financial markets have been slow to react because there has been a belief that the Fed would reverse course on tapering the moment that the U.S. economy started to slow down again. But even though the U.S. middle class is in horrible shape, and even though there are lots of signs that we are heading into another recession, the Fed has continued tapering.
Of course it is important to note that the Fed is still absolutely flooding the financial system with money even after the announcement of more tapering on Wednesday. When you are talking about $55,000,000,000 a month, you are talking about a massive amount of money. So the Fed is not exactly being hawkish.
