Today’s the day: The training wheels come off the economy. After several months of bond buying on the part of the Fed, with the intention of boosting asset prices, that’s over.
The controversial program known as “QE2” (because the first bond buying was done during the financial crisis) has been baked into the market since early August, when Bernanke raised the possibility at his famous “Jackson Hole” speech.
The results have clearly been mixed. The economy’s recovery is still on mixed terrain. Inflation has surged (or as the Fed sees it) deflationary risk has dramatically abated.
Some market moves haven’t gone exactly as some expected, such as the INCREASE in Treasury yields, despite the increased bid for bonds. Despite this, some expect yields to surge with program over.
Anyway, to figure out how the hangover might look, we’ve put together the numbers of what did what during the program, from equities, to metals, to Treasuries.
Read more: http://www.businessi…7#ixzz1QrpwNOW1