FedRes "Tightens", Tapers $10 Billion – Full Redline!

• Fed “Tightens”, Tapers $10 Billion – Full Redline! 
  by Tyler Durden, www.zerohedge.com
  Despite the world of mainstream media pundits proclaiming the US is recovering nicely and that a taper is priced in (and the warning that the 5Y auction gave this morning that it’s not), markets are already reacting violently to the Fed’s decision to announce a small ‘taper’ (and more dovish forward guidance)…
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  *FED TAPERS QE TO $75 BLN MONTHLY PACE, STARTING IN JANUARY
  *FED SAYS `FURTHER MEASURED STEPS’ POSSIBLE ON TAPERING
  *FED: EXCEPTIONALLY LOW RATES UNTIL JOBLESS FALLS WELL PAST 6.5%
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  We now leave it to Ben and his final press conference to explain his decision… and, of course, make sure everyone remembers “QE is for Main Street”, ‘tapering is not tightening’ (despite Jim Bullard telling us it is), and just how effective ‘forward guidance’ is.
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  Pre-FOMC: S&P Fut 1771 (spiked pre-FOMC), 5Y 1.55%, 10Y 2.875%, VIX 16.5%, Gold $1236 (which was spiking pre-FOMC), EUR 1.376
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  As a reminder, here are the 4 reasons why the Fed was cornered into tapering… as we have noted numerous times before; the “taper” is all about economic cover for a forced move the Fed has to make:
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  read more!

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