
“Normally, monetary tightening produces undesirable effects. But none of those effects has shown up yet. Stocks continue to rise. Long-term interest rates remain ultra-low. The unemployment rate is improving. And inflation—at least as the government reports it—is rising only modestly. Naturally, the question is: how has the Fed managed to taper without roiling markets? The answer: the Fed has printed so much money in the past few years that it can afford to take a breather. Since 2013, the Fed has been growing its balance sheet (by buying Treasuries and mortgage-backed securities) faster than the government debt has grown.”
http://www.caseyresearch.com/cdd/why-the-feds-taper-hasnt-hurt-the-stock-market-yet
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