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19 Jun 2013
Flash: Fed to start tapering in September
FXstreet.com (Barcelona) - Today, Bernanke provided additional clues about the possible timing of the Fed's QE3 tapering, saying that tapering is likely to begin “later this year” and end around mid-2014.
In view of Societe General economists, "We maintain our call for a September tapering. Prior to today’s meeting, we had assumed that asset purchases would come to a full stop by the January meeting. While Bernanke’s guidance suggested that buying will continue until mid-2014, our own forecast trajectory hits the 7% level of unemployment a bit earlier, before the end of Q1."
Societe Generale foresees now a shorter tapering cycle than earlier expected. Afterwards, a long pause in Fed policy should be seen, the bank's Economists said.
In view of Societe General economists, "We maintain our call for a September tapering. Prior to today’s meeting, we had assumed that asset purchases would come to a full stop by the January meeting. While Bernanke’s guidance suggested that buying will continue until mid-2014, our own forecast trajectory hits the 7% level of unemployment a bit earlier, before the end of Q1."
Societe Generale foresees now a shorter tapering cycle than earlier expected. Afterwards, a long pause in Fed policy should be seen, the bank's Economists said.