FURTHER FURTHER READING, SPECIAL FOMC REACTION EDITION
- Is the Fed repudiating its own economists?
- Did inflation kill the taper?
- What about emerging markets? Look how happy they seem, shorts excluded.
- And did the Fed just introduce a new mobius strip problem?
- Or maybe the Fed is just gun shy.
- Eh, maybe the Fed simply decided that the economy still sucks.
- Here's a tip: never underestimate the Fed's dovishness.
ROUND-UP
Fed holds the line on bond-buying: "The US Federal Reserve sprung a surprise on markets by keeping its asset purchases steady at $85bn a month as it cut growth forecasts for 2013. Despite expectations that the Fed would start to taper its third round of quantitative easing, the rate-setting Federal Open Market Committee said it would 'await more evidence that progress will be sustained before adjusting the pace of its purchases'." (Financial Times)
Fear of missing out fuels China property market: "Zhang Linsheng took a deep breath before swiping his debit card for Rmb1.8m ($294,000), the downpayment on his new Shanghai apartment. 'It's the most I've ever paid at once,' he said. The real estate agent, wearing a pink shirt and silver tie, chuckled: 'His downpayment is higher than the entire cost of my home. But there's no point in waiting. Prices are only going to go up.'" (Financial Times)
India's Palaniappan Chidambaram stands firm on tax reforms: "The Indian government has vowed to press ahead with tax and investment reforms long demanded by business, in spite of a looming general election campaign expected to usher in populist handouts rather than financial liberalisation." (Financial Times)
Brussels plans end to self-regulation of market benchmarks: "Thousands of benchmarks underpinning €1,000tn markets ranging from oil and rice to mortgage rates would be regulated for the first time, under a sweeping Brussels proposal to set tougher EU standards in the wake of the Libor scandal. The European Commission blueprint, unveiled on Wednesday, goes further than any other international jurisdiction in ending self-regulation and placing tight legal obligations on all those that compile and contribute to benchmarks." (Financial Times)
