Unanimous Fed decision to taper 'sets precedent'

Narayana Kocherlakota

The Federal Open Market Committee (FOMC) yesterday unanimously agreed to reduce its monthly asset purchases by an additional $10 billion next month, but reaffirmed its intention to keep interest rates close to zero "well past" the point where US unemployment reaches 6.5% at Ben Bernanke's last meeting as Fed chair.

Meanwhile, figures published today by the US Bureau of Economic Analysis show GDP increased at an annual rate of 3.2% in the fourth quarter of 2013 – down from 4.1% in Q3 – reflecting

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