The Rally Just Got Taken Down A Bit After FT Reports That The Fed Will Signal The Taper

ben bernanke new york stock exchange traders

In case you were wondering how central to markets the “tapering” story is right now…

The FT just published an article by its Federal Reserve correspondent, Robin Harding – with the title “Fed likely to signal tapering move” – and U.S. stocks took a sharp turn lower as a result.

The lede from the piece: “Ben Bernanke is likely to signal that the US Federal Reserve is close to tapering down its $85bn-a-month in asset purchases when he holds a press conference on Wednesday, but balance that by saying subsequent moves depend on what happens to the economy.”

Last week, when WSJ’s Fed reporter Jon Hilsenrath published a blog post with the opposite suggestion (that the Fed would strike a dovish tone) – titled “Analysis: Fed Likely to Push Back on Market Expectations of Rate Increase” – stocks spiked.

Right now, the S&P 500 is trading right around 1637, up only 0.7% on the day, versus levels around 1644 before Harding’s article hit the wires.

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