The Fed has spoken, there will be no tapering for the time being as “the tightening of financial conditions observed in recent months, if sustained, could slow the pace of improvement.”
In other words, the economy is nowhere near growing on its own at a sustainable pace. That is the sad truth but gives me some relief: at least it wasn’t just my analysis to conclude that. The coming debt-ceiling discussion (the third in twelve months) is enough of a head-wind for the economy that I think that the Fed will be very careful before actually beginning the tapering process.
As a small business owner I say thank you to Mr. Bernanke for being very careful and I resolve to improve our business by listening to our customers better than ever.