On Wednesday, the FOMC announced a fourth $10 billion reduction to its quantitative easing program, reducing its monthly bond purchases to $45 billion and keeping pace with earlier guidance. The Fed will cut monthly mortgage bond purchases to $20 billion from $25 billion. Treasury purchases will drop to $25 billion a month from $30 billion. The stock market didn’t make any big moves following the release coming off of mixed signals leading up to the 2 p.m. release. Following the release The Dow Jones Industrial Average was up by about 0.09% and the S&P 500 was up close to 0.2%. ------------- So the Fed has now cut the bond program from $85B a month to $45B a month and the stock market just keeps humming along. That's because the stock market is driven by EARNINGS and not by the Fed propping up the markets. Yes, the Fed was a tail wind on the markets but it was not the primary driver for the records set last year. Wondering where all the bears are?