We have only breathing room, not an elixir

For a central bank that has done a remarkable job using non-conventional monetary instruments — asset purchases and forward guidance — to guide market expectations, it must be said that the US Federal Reserve hasn't had its finest hour. For months, it has been preparing markets on the imminence of "tapering" asset purchases. Then suddenly, it did a volte face and pushed out tapering by at least a few months, possibly more.

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