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#Fed Begins #Taper

Count this as the tweet of the day, because at 2 PM today, this is all that was then talked about. Today the Federal reserve decided to cut their Quantitative Easing (QE) to $75 billion a month from the previous $85 billion. This will start coming in January. The equity market turned much higher based on this move.

The most important thing about the Fed announcement is that the federal funds rate will stay low 0%-.25% “well after” the unemployment rate goes to 6.5%. Based upon projections this means that it will continue into 2016. What this means for you as an investor is that all of your borrowing rates will continue to stay low. So all those trying to borrow to buy houses, all those trying to get student loans, all those borrowing/financing cars, etc will keep those low interest rates.

Sources: WSJ, CNBC, MarketWatch

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