Recapping the day's news and newsmakers through the lens of CNBC.
For months, everyone's been obsessing over the Federal Reserve's tapering of its bond-purchasing program—now not expected until next year. The next big question is, when will the Fed start to raise interest rates? Perhaps, not for years. A couple of papers by Fed economists suggest rates should be kept low until unemployment, currently 7.2 percent, falls to 6 percent, or perhaps even 5.5 percent. Until now, the expected goal was 6.5 percent. According to one analysis, even if tapering began as early as next month, the Fed's near-zero target for short-term rates could remain in effect until 2017, and the Fed could keep rates lower than normal into the 2020s.
"Given the structure of the Federal Reserve Board, we believe it is likely that the most senior officials—in particular, Ben Bernanke and (Chair-elect) Janet Yellen—agree with the basic thrust of the analysis."—Jan Hatzius, chief economist at Goldman Sachs
"Just because we decide at some point that we should reduce the amount of purchases that we make in long-term securities doesn't necessarily mean we change when we raise the short-term rates."—Eric Rosengren, Boston Fed president