14-11-2013, 03:56 PM
It seems the market expectation is no tapering within this year. IMO, the tapering will likely happen around first-half of 2014...
US officials say easy monetary policy still needed
MONTGOMERY (Alabama) — The Federal Reserve should keep monetary policy ultra-easy, given the economy’s tepid growth and an uncertain outlook for job growth, two senior officials have said, reinforcing views that the United States central bank will not taper bond-buying before next year.
At the same time, last month’s government shutdown may undermine the reliability of economic data through December, said Mr Dennis Lockhart, President of the Federal Reserve Bank of Atlanta. That could provide another reason not to expect policy action at the next Fed policy meeting on Dec 17 to 18, though he would not rule it out.
“Monetary policy overall should remain very accommodative for quite some time,” Mr Lockhart told an economic forum. “Even though the economy is growing and we’re making progress on unemployment, there are real concerns about whether the recent modest pace of gross domestic product is enough to maintain employment momentum.”
Elsewhere, Mr Narayana Kocherlakota, President of the Minneapolis Fed, spoke even more strongly about the need for aggressive action to foster growth. “Reducing the flow of (bond) purchases in the near term would be a drag on the already slow rate of progress of the economy towards the committee’s goals,” he told the Chamber of Commerce in St Paul, Minnesota.
“Inflation remains weak, or very low by historical standards, by the (Fed’s) goal of 2 per cent per year,” he said.
...
http://www.todayonline.com/business/us-o...ill-needed
US officials say easy monetary policy still needed
MONTGOMERY (Alabama) — The Federal Reserve should keep monetary policy ultra-easy, given the economy’s tepid growth and an uncertain outlook for job growth, two senior officials have said, reinforcing views that the United States central bank will not taper bond-buying before next year.
At the same time, last month’s government shutdown may undermine the reliability of economic data through December, said Mr Dennis Lockhart, President of the Federal Reserve Bank of Atlanta. That could provide another reason not to expect policy action at the next Fed policy meeting on Dec 17 to 18, though he would not rule it out.
“Monetary policy overall should remain very accommodative for quite some time,” Mr Lockhart told an economic forum. “Even though the economy is growing and we’re making progress on unemployment, there are real concerns about whether the recent modest pace of gross domestic product is enough to maintain employment momentum.”
Elsewhere, Mr Narayana Kocherlakota, President of the Minneapolis Fed, spoke even more strongly about the need for aggressive action to foster growth. “Reducing the flow of (bond) purchases in the near term would be a drag on the already slow rate of progress of the economy towards the committee’s goals,” he told the Chamber of Commerce in St Paul, Minnesota.
“Inflation remains weak, or very low by historical standards, by the (Fed’s) goal of 2 per cent per year,” he said.
...
http://www.todayonline.com/business/us-o...ill-needed