The Fed on Wednesday announced another $10 billion reduction to its monthly bond-buying program, which was expected. But an accompanying set of policy-rate projections caused a bit of a stir when it showed some Fed officials pulling forward their forecasts for higher rates.
Fed Chairwoman Janet Yellen, in her post-meeting press conference, rattled bond investors further when she said, in somewhat of an off-hand manner, that the first rate hike could come about six months after the bond-buying program ends.
With investors widely expecting the purchase program to end in the fall, that meant a rate increase could be in the cards as early as next spring -- a bit sooner than the mid-2015 many market participants had in mind.
Fed Chairwoman Janet Yellen, in her post-meeting press conference, rattled bond investors further when she said, in somewhat of an off-hand manner, that the first rate hike could come about six months after the bond-buying program ends.
With investors widely expecting the purchase program to end in the fall, that meant a rate increase could be in the cards as early as next spring -- a bit sooner than the mid-2015 many market participants had in mind.
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