Will market turmoil drive the Fed to taper the taper?

Mortgage News You Can Use

HousingWire – Kerri Ann Panchuck

The stock market took a beating like Antonio Margarito in 2010, as disappointing earnings, the second taper, fears over euro zone deflation led to heavy selling of stocks and heavy buying of bonds the last week of January. Income stagnation and poor reports from leading retailers, along with trouble in emerging markets, only added fuel to the fire.

The big indexes are set to end January with their first monthly decline since August 2013. So how much of this volatility comes from a Federal Reserve pulling its thumb off the quantitative easing scale and slowing the easy money gravy train? On Wednesday, in what is Ben Bernanke’s last week in the big chair, the Fed announced it would continue to reduce its monthly bond purchases, now down to $65 billion. Some are betting that if the volatility persists, incoming Fed Chair Jane Yellen won’t have…

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