Ben Bernanke’s comment on “tapering,” in his last appearance before Congress, has apparently been lost on the markets. In its latest On the Market newsletter, Morgan Stanley Wealth Management says investors assumed that a sooner-than-expected reduction in asset purchases would lead to an increase in the federal funds rate.
In a June 19 press conference, the Federal Reserve chairman said the current level of the federal funds target “is likely to remain appropriate for a considerable period after asset purchases are concluded.”
