FED Ruined a Perfectly Good Rally in Markets

Once aagin speculation about when the "tapering" of the FED program of purchasing $85 Billion of U.S. Treasuries and MBS bonds each month roiled both equity and fixed income markets.  This time the minutes revealed that that there had been discussion about which of the two categories would be tapered first.  As we all expected, the minutes said the impending cessation will be discussed in each of the coming meetings.  The program could last well into next year as the economy is still growing at a slow pace and is not generating nearly enough jobs.