Originally published on Wed September 18, 2013 4:28 pm
Credit Mark Wilson / Getty Images
The Federal Reserve said today that it is not slowing down its monthly purchase of $85 billion in bonds.
The program is intended to stimulate a sluggish economy and the Fed was widely expected to announce that in light of a recovering economy, it was tapering the bond-buying program. Instead, it delivered a surprise that caused the markets to jump, as the Dow and the S&P closed at record highs.
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One month ago, Federal Reserve Chairman Ben Bernanke introduced the idea of winding down the Fed's massive stimulus programs. On that announcement, the markets tanked. Today, Bernanke said pretty much the same thing. But this time, the markets yawned.
As NPR's John Ydstie explains, the Fed chairman appears to have finally found the formula to ease Wall Street's concerns.
Ben Bernanke's latest comments are at the top of NPR's business news.
Stock and bond markets reacted positively to the Federal Reserve chairman's latest remarks on the economy this morning. Ben Bernanke is on Capitol Hill delivering the Fed's twice-yearly update on the economy and Fed policy before the House Financial Services Committee. NPR's John Ydstie joins us now to talk about it. And John, what was it that Bernanke said that impressed the market?