An Unexpected Gift to the Market by the Fed

The US Federal Reserve chief Ben Bernanke has an unexpected parting gift to the markets, since the Fed’s decision to delay the QE tampering will give investors and the market additional time to search for new sources of liquidity. However, the downside of this, the US dollar suffered a heavy blow because of such decision. Some of the data that kept the Fed from slowing the stimulus program is that housing starts rose in August but only because July was revised down. In addition, because the Fed decision mortgage rates have declined over the last week prompting an increase in mortgage application for both purchases and refinances.

In my opinion, the Fed decision helped the US economy, especially mortgage rates from rising; this made housing mortgages to slow down its rates helping consumers and buyers to refinance it again. In article of Paxforex it showed in details other factors affecting the Fed decision.

For more details:

Fed Presented an Unexpected Gift to Markets - PaxForex

Will emerging economies take advantage of the Fed’s reprieve to get their houses in order? – Quartz

Bernanke Calms the Waters, Low Rate Pledge Is a Present: Don Hays | Breakout - Yahoo Finance

Overall, do you think this is long-term dollar bullish?