The Fed has decided to end its QE3 program:
“The Committee judges
that there has been a substantial improvement in the outlook for the labor
market since the inception of its current asset purchase program. Moreover, the
Committee continues to see sufficient underlying strength in the broader economy
to support ongoing progress toward maximum employment in a context of price
stability. Accordingly, the Committee decided to conclude its asset purchase
program this month”.
Regarding the future direction of short-term policy rates, the FOMC statement noted:
“The Committee anticipates,
based on its current assessment, that it likely will be appropriate to maintain
the 0 to 1/4 percent target range for the federal funds rate for a considerable
time following the end of its asset purchase program this month, especially if
projected inflation continues to run below the Committee's 2 percent longer-run
goal, and provided that longer-term inflation expectations remain well
anchored. However, if incoming information indicates faster progress toward the
Committee's employment and inflation objectives than the Committee now expects,
then increases in the target range for the federal funds rate are likely to
occur sooner than currently anticipated. Conversely, if progress proves slower
than expected, then increases in the target range are likely to occur later
than currently anticipated.”
Update:
Impact of QE (lots of nice charts):
http://www.nytimes.com/2014/10/30/upshot/quantitative-easing-is-about-to-end-heres-what-it-did-in-seven-charts.html