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The policy has been in large part judged a success, if only because it helped spare the U.S. economy from a complete meltdown. Recent comments by Fed Chairman Bernanke suggest that the central bank expects this â€�highly accommodative policy’ to continue for the foreseeable future as economic signals remain mixed. That said, talks around the central bank scaling back its bond purchases in the coming months if the economy improved, have led to significant volatility in the markets. The recent sell-off in bonds indicates the market’s uneasiness over a tapering of the Fed’s bond-buying program. Since the beginning of May, the yield on the benchmark 10-year Treasury note has risen to 2.60% from 1.6%, the biggest single move in interest rates since 1962.
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