(RECAP: How willing is the Fed to alter its asset purchases in response to changing economic conditions — such as the news last week that GDP growth was negative in the first quarter? My view is that the Fed will continue to reduce purchases in “measured steps” as it has so far, and only a big swing in the data about inflation, output and employment could induce the Fed to alter the course it’s on. In addition, I believe the will be far more willing to increase the speed of the taper and end QE3 sooner in response to good news than it will be to reverse course in response to bad news.)