Federal Reserve confounds the economic forecasters
Federal Reserve Chairman Ben Bernanke speaks during a news conference at the Federal Reserve, September 18, 2013 in Washington, DC. Chairman Bernanke announced on Wednesday that it will continue buying bonds at $85 billion a month.
For many economists, yesterday's news from the Federal Reserve came out of left field. Fed chairman Ben Bernanke said the economy still isn't strong enough to taper off bond buying stimulus. The news has left some of the economic forecasters feeling led down the garden path -- a lot of money will have been lost taking financial positions based on the big prediction that didn't materialize.
Drew Matus, senior US economist at UBS Securities, joins Marketplace Morning Report host David Brancaccio to discuss.
Click the audio player above to hear more. And to listen to David's conversation with Diane Swonk, chief economist at Mesirow Financial, click here.