Fed Doesn't Taper As Downside Risks Recede, But Deflation Could Keep QE Around

While the Federal Reserve?s June FOMC statement left much room for analysis, including signals that could indicate tapering soon or an increase in the pace of asset purchases, risk assets and broader markets retreated sharply on expectations of Bernanke & Co. taking away the punch bowl. Ultimately, the Fed noted the economic recovery is becoming more self-sufficient, but noted inflation is quite a lot lower than previously expected, which leave the Fed split between further accommodation to figh...