How Will Recent Economic Data Affect The Fed's Purchase Of Long Term Secutites?

The Fed has been purchasing long term securities in order to strengthen the banking system and to reduce the unemployment rate.  Tim Duy reviews the recent economic data and speculates on how that will alter the Fed's policy known as quantitative easing.  He concludes that the Fed will soon begin to taper its purchase of long term securities and that this will not have a negative effect on the economy.  Duy provides a good overview of the economic data that the Fed uses to make decisions and he offers his insights into how the data will be interpreted by the significant players at the Fed.