Equities were cautious on Wednesday ahead of the FOMC announcement and press conference but quickly found solid footing in the wake of the release. The FOMC decided to begin the taper with an incremental $15 billion reduction per month until the middle of next year. Fed Chief Jerome Powell says the trajectory of the taper is not set in stone and could be adjusted at any time.

Investors should take that to mean tapering may accelerate over the next few months along with the inflation data. Inflation is still rising unchecked and there is little sign within the economy those pressures are subsiding. Even when they do, there is no guarantee retailers and merchants will lower their prices to match. The next big hurdle of the week is the NFP report on Friday. If the NFP is in-line with the ADP report jobs should come in the range of 550,000 to 600,000.