21 Jan 2014
Fed watcher Hilsenrath tips further QE taper in January
FXstreet.com (Bali) - According to WSJ Fed-watcher Hilsenrath, the Fed is expected to wind down its purchases of bonds even further this January.
Despite the shocking jobs report, in which the participation rate fell quite significantly, at the same time that jobs created fell way short of consensus, Hilsenrath argues that, in view of Fed officials, the dismal employment reports "failed to diminish" prospects of growth in the US, Fed officials think.
According to the Journalist, an additional $10 bn reduction from $75 bn to $65 bn can be expected at the January meeting. In view of Hilsenrath, the fact that the Treasury yields are being kept at a reasonable level (not overshooting) is giving the Fed some confidence to act with the unwinding QE process.
As per forward-guidance, new ways of providing a more accurate road-map as a measure of Fed policies is still being discussed among the new board.
Despite the shocking jobs report, in which the participation rate fell quite significantly, at the same time that jobs created fell way short of consensus, Hilsenrath argues that, in view of Fed officials, the dismal employment reports "failed to diminish" prospects of growth in the US, Fed officials think.
According to the Journalist, an additional $10 bn reduction from $75 bn to $65 bn can be expected at the January meeting. In view of Hilsenrath, the fact that the Treasury yields are being kept at a reasonable level (not overshooting) is giving the Fed some confidence to act with the unwinding QE process.
As per forward-guidance, new ways of providing a more accurate road-map as a measure of Fed policies is still being discussed among the new board.