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Fed Bullard: Small taper would still leave very stimulative policy

  • Expectations of tapering will rise as labour market continues to show cumulative improvement
  • Fed wants to be assured that any progress in labour market will be lasting
  • Unemployment and and payrolls have clearly improved but other labour data has not
  • FOMC decisions are dependant on data
  • Forward guidance and asset buying separate tools but market sees them closely linked creating challenges for Fed
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Fed says it will await more evidence before QE taper

Highlights of the October 30, 2013 Federal Reserve’s FOMC statement:
  • Fed funds rate held at 0-0.25%, as expected
  • Monthly bond purchases remain at $85 billion/month, as expected
  • No change to forward guidance on interest rates
  • Fed says data since Sept meeting generally suggests economy continued to expand at a moderate pace
  • Repeats that downside risks to the outlook have diminished on net since last Fall
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mag avatar
mag 30 Окт.

Thanks Anna

geula4x avatar
geula4x 30 Окт.

+1 Liked: Nice summary! :-) IMHO we'll see FOMC effect fade soon, and EUR/USD resume upwards momentum... Happy trading :-)

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