Investors confused by Fed

Investors were hoping that the minutes from the last Fed meeting would answer their questions about when the Fed would begin tapering their bond-purchasing program, but it didn't. The Fed basically said they are looking for continued improvement in the job market.

By Angela Johnson
August 21, 2013: 3:00 PM ET
CNN Money

Investors had hoped the minutes from the Federal Reserve's latest meeting would answer questions about when the central bank would start to pull back on its bond purchases. They didn't.

Stocks immediately fell to their lows of the day Wednesday after the minutes were released. But the Dow Jones industrial average then moved aggressively off those lows while the S&P 500 and Nasdaq turned higher.

The Fed essentially said that it is still looking for continued improvement in the job market, and hinted it may not yet ready to taper its bond-buying program.

Bond investors did not seem so happy though. The 10-year Treasury yield increased to 2.86% as bond selling picked up following the minutes.

Investors will now be closely watching the August unemployment numbers, due out on September 6th, for any indication of improvement in the labor market. Stronger jobs numbers could prove to be a catalyst for the tapering of the stimulus markets have come to depend on.

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