Hahahahahaha
I almost chocked on my dinner there.
So yes they cut the program by 10%, but it still means an atrocious 750 BILLION dollars of currency is potentially going to be created out of thin air next year. That's no more healthy than cutting a 10,000 calorie per day diet to 9,000 calories. You're still going to have heart trouble, unless you can find a way to expedite the process of cutting your calorie intake by 80% without sending your body into shock. And that's what this is abut: shock management.
If the fed totally cut the program back to zero, we would have likely seen a massive profit taking event and subsequent market decline. People would have gotten scared, for fear of the unknown. So the Fed is smart in the sense that they realize the populous will see cutting a small amount now as symbolic of future actions, which in this case is ultimately symbolic of economic confidence. That is why stocks rallied today.
