7 Aug 2013
Flash: Fed tapering to begin in October? – Deutsche Bank
FXstreet.com (New York) - On the face of it the comments from the Chicago Fed President were relatively hawkish for the dovish-leaning Charles Evans (who also happens to be a FOMC member), notes Macro Strategy Analysts J. Reid and C. Tan at Deutsche Bank.
Key quotes
He commented that the Fed “is quite likely” to slow down its asset purchase program “starting later this year”. Evans added that “we’re not far” from having sufficient evidence of accelerating growth and he “would not rule out a September tapering”.
“Evans forecast that the Fed would be able to stop QE in mid-2014. Balancing those comments, he said rates could stay low even after the jobless rate falls below 6.5% and that inflation remains below target. Our take is that tapering could begin in October’s FOMC and that there was no reason why Bernanke couldn’t call a press conference for that month’s meeting.”
Key quotes
He commented that the Fed “is quite likely” to slow down its asset purchase program “starting later this year”. Evans added that “we’re not far” from having sufficient evidence of accelerating growth and he “would not rule out a September tapering”.
“Evans forecast that the Fed would be able to stop QE in mid-2014. Balancing those comments, he said rates could stay low even after the jobless rate falls below 6.5% and that inflation remains below target. Our take is that tapering could begin in October’s FOMC and that there was no reason why Bernanke couldn’t call a press conference for that month’s meeting.”