Fed Looks Likely to Stick to Policy Path

These prompts will give you a little less guidance–I want you to tie what we've learned in class to explain this article. Things that could be explained are why the Federal Reserve was buying $85MM worth of bonds per month initially, what will happen as the Fed tapers, why they were setting such a low interest rate, and why they were watching the unemployment rate–at least initially–as a signal of when they may start increasing interest rates, and why they backed away from that plan (hint: think of the labor force ,participation rate)