US Fed overnight
The US Fed last night confirmed the widely expected continuation of tapering of QE with another $10b/month to a $55b/month money printing exercise. Chair Yellen said that IF they continued tapering it would see an end to QE by their ‘fall’ (i.e. out spring). Further she started warning markets of a rise in interest rates some ‘considerable time’ after any end to QE hinting at maybe 1% by the end of 2015. Shares and gold dropped and the US dollar firmed (hence cushioning our AUD gold price) on the news but there are still many analysts confidently stating the market is too fragile and hooked on free money to survive and we will in fact see an INCREASE in QE before long.