The Fed announced a taperand stocks are spiking.

The Dow is up 275 points and the S&P 500 is up 28 points.

Gold is basically unchanged and bonds are now higher, with the yield on the 10-year at 2.89% (up 5 basis points from yesterday’s close).

The Fed will taper its asset purchasing program to a monthly rate of $US75 billion from the current $US85 billion pace, the FOMC just announced.

Click here for our full breakdown of the Fed’s surprise decision »

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