The Federal Reserve decided to maintain its pace of asset purchases, and the typical kneejerk reaction followed, but the important take-away is that many in the financial media were too optimistic. A lot of the noise leading up to the September Federal Open Market Committee (FOMC) meeting was largely a result of impatience and political speculation, with little regard to the independent structure of the Federal Reserve and its dedication to supporting the economy rather than paving the way for future successors or allowing the market to dictate monetary policy.
Federal Reserve Chairman Ben Bernanke’s press conference allowed everyone a chance to pause, reflect, and return to our trading desks with a more disciplined approach to interpreting information.
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