After an initial decline, equity markets rebounded, suggesting investors view the Fed's action as confirmation of improving economic fundamentals.
Highlights from Federal Reserve Chairman Ben Bernanke's news conference following the Fed's policy announcement on Wednesday that the central bank would begin to trim its aggressive bond buying program.
The Federal Reserve started its long-awaited reduction in stimulus, cutting its monthly purchases to $75 billion a month, saying it expects to keep reducing asset buys in "measured steps" if economic figures continue to improve.
The Sensex and Nifty will benefit hugely from the Fed's policy of a calibrated taper of asset purchases as will the Indian rupee.
If the Indian markets take their cue from US stocks we should be in pretty good shape.
Below are highlights from Federal Reserve Chairman Ben Bernanke's news conference following the Fed's policy announcement on Wednesday that the central bank would begin to trim its aggressive bond buying program.
Fed Chairman Ben Bernanke had said in June the bank will begin slowing the pace of bond purchases later this year and would likely end the program by mid-2014.
Debate over when the Federal Reserve could trim its bond purchases monopolized market talk this year, but as a new Fed chief takes charge, more participants believe the key theme to emphasize for 2014 is low rates for longer.
As the Federal Reserve nears a decision to pare its bond-buying program, top policymakers on Thursday turned to a new monetary policy battlefront: a growing debate over how the Fed should signal the timing of eventual interest rate hikes.
The Senate Banking Committee approved her nomination on a 14-8 vote. Sen. Joe Manchin of West Virginia was the only Democrat to oppose Yellen's nomination. Republican Sens. Bob Corker of Tennessee, Tom Coburn of Oklahoma and Mark Kirk of Illinois supported her.<br /><br />
Federal Reserve Chairman Ben Bernanke, in his first public comments on personal plans after he steps down from the Fed in January, said on Tuesday he will be "writing and speaking" on topics that have consumed his tenure at the U.S. central bank.<br /><br />
The Senate Banking Committee is expected to vote Thursday to approve President Barack Obama's choice of Janet Yellen for chairman of the Federal Reserve and to send the nomination on to the full Senate.
The global markets latched onto the remarks which underlined Yellen's staunchly pro-stimulus stance, one day before her first Senate confirmation hearing to be the next chairman of the Federal Reserve.
The S&P 500 also found support from technology stocks, with shares of NetApp rising 2.7 percent to $41.29 ahead of the company's results after the close. After the bell, the stock slipped 0.2 percent to $41.20 following the release of its results.
Janet Yellen says the economy has regained ground lost to the deepest recession since the 1930s. But she says unemployment remains too high at 7.3 percent and notes that the Fed is still trying to accelerate the economy's recovery.
President Barack Obama will announce his choice of Federal Reserve Vice Chairwoman Janet Yellen to be the next head of the U.S. central bank on Wednesday, putting her on course to be the first woman to lead the institution in its 100-year history
The Fed can afford to wait for a few more months to start tapering down its asset purchase programme.
Eyeing to increase two-way commerce by five times from the current level of $100 billion, India and the US have vowed to expeditiously address all trade and investment policy issues to remove obstacles and improve business environment in both countries.
Markets are likely to see a gap up opening after the Federal Reserve stunned markets and decided not to taper its asset-buying programme.