Ask an expert: Why the Fed is in a tough spot
MSN Money's Anthony Mirhaydari explains the central bank's options given the mixed economic signals and how markets might react to its next move.
In the video below, MSN Money's Anthony Mirhaydari explains the Fed's options and how markets might react. While the Fed is widely expected to taper its $85 billion a month bond-buying program, investors want to know not only whether the Fed would reduce the monthly purchases of Treasurys, but also by how much.
As Mirhaydari explains, the markets have been reacting wildly to the Fed possibly pulling back on its cheap money stimulus because markets have been feeding on it. And expectations are just as varied as well, from no tapering to a $10 billion cutback to more.
As for the economy, it doesn't necessarily support a pullback because data have been mixed. Some areas show strength, while others remain weak. Meanwhile, it's possible the Fed could miss its inflation target if it waits too long to taper.
The discussion about the possible tapering of the Fed's stimulus program and its effects on the market continues over at MSN Money's Facebook community.
MSN Money on Twitter and Facebook@msn_money and @topstocksmsn
More from Top Stocks:
The Federal Reserve is in a tough spot because they are caught in the.....
MOTHER OF ALL LIQUIDITY TRAPS!
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
Consumers are very status conscious in Asia, Africa and other emerging-market areas. This is especially true in China.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.