In what was apparently a big surprise, the Federal Reserve Board announced after its Open Market Committee meeting today that it would postpone “tapering”–a gradual reduction in bond-buying designed to stimulate the economy–for now, at least until near the end of the year. The stock market is jumping for joy, and Mr. Krugman will be very pleased.
If the president would announce he’s appointing Janet Yellen as the next chairman, this would be a very good week for the Federal Reserve Board.