Nothing will deter Fed from tapering this week
Market volatility will not persuade them to slow down reduction in asset purchases
Federal Reserve officials will likely agree on another $10 billion taper to its bond-purchase program after a two-day meeting that ends Wednesday. That’s the same pace as the first reduction announced in December and it will bring the monthly purchases down to $65 billion per month, consisting of $35 billion of Treasurys and $30 billion or mortgage backed securities.
“I think the Fed is desperate to extract itself from quantitative easing, and it will continue to scale back the program and end it this year,” said Bernard Baumohl, chief global economist of the Economic Outlook Group, in an interview.
Fed chairman Ben Bernanke indicated the Fed wanted to taper at a similar pace to the December move and “now they’ll start off on that road,” agreed Nigel Gault, co-chief economist at The Parthenon Group in Boston.
The tumble in the stock market over the past two days will not deter the Fed from tapering again, analysts said.
“I am not sure what happened over the past two days is yet sufficient to slow them down,” said Dan Greenhaus, chief global strategist at brokerage firm BTIG. |
发表于 2014-1-27 10:22
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