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The U.S. Federal Reserve defied investor expectations on Wednesday by postponing the start of the wind down of its massive monetary stimulus, saying it wanted to wait for more evidence of solid economic growth.
At first... I was like...WHAT?
But immediately put some money into Silver Wheaton $SLW. TWITTER POST
Uncle Ben refused to commit to begin reducing the bond purchases this year, and instead went out of his way to stress the program was "not on a preset course." In June he had said the Fed expected to cut back before year end. The Fed reiterated that it would not start to raise interest rates at least until unemployment falls to 6.5 percent, as long as inflation does not threaten to go above 2.5 percent. The U.S. jobless rate in August was 7.3 percent.
Bernanke had not only ITZ confused, but left a majority of traders flat footed. To make a long story short...the Fed Chairman basically kicked the can down the road for the next chairman...most likely Janet Yellen.
Below are some updated charts from the last few weeks:
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