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16 Dec 2013
Flash: December taper? - BAML
FXstreet.com (London) - Strategists at Bank of America Merrill Lynch said that they agree with the market that the chances of a December taper have risen of late, but they still expect the Fed to taper in 1Q next year.
Key Quotes:
“The FOMC's statement, projections, and Ben Bernanke's final press conference should all reinforce the Fed's patience”.
“The December FOMC meeting will be busy, in addition to the usual statement, the FOMC will also update its Summary of Economic Projections (SEP) and Chairman Bernanke will give his final press conference. And there will be lots of things to talk about: tapering, forward guidance, and the "dot plot" of year-end rate forecasts among these”.
“Our base case remains for the Fed to start tapering in 1Q next year, although the odds of a December taper have risen recently”.
“We look for the Fed to strengthen its forward guidance over the course of 2014, but expect at most additional qualitative refinements at this meeting”.
“Market expectations for a December taper have risen recently, due to better activity data of late and a modest budget deal that removes the near-term risk of a shutdown”.
“We likewise see an increased chance of a December taper for these reasons - although our base case remains March of next year, with January very close behind”.
“Some have suggested that since the markets are "ready," the Fed should, and will, taper. But the same arguments were made back in September, and Fed officials paid them no more heed back then”.
Key Quotes:
“The FOMC's statement, projections, and Ben Bernanke's final press conference should all reinforce the Fed's patience”.
“The December FOMC meeting will be busy, in addition to the usual statement, the FOMC will also update its Summary of Economic Projections (SEP) and Chairman Bernanke will give his final press conference. And there will be lots of things to talk about: tapering, forward guidance, and the "dot plot" of year-end rate forecasts among these”.
“Our base case remains for the Fed to start tapering in 1Q next year, although the odds of a December taper have risen recently”.
“We look for the Fed to strengthen its forward guidance over the course of 2014, but expect at most additional qualitative refinements at this meeting”.
“Market expectations for a December taper have risen recently, due to better activity data of late and a modest budget deal that removes the near-term risk of a shutdown”.
“We likewise see an increased chance of a December taper for these reasons - although our base case remains March of next year, with January very close behind”.
“Some have suggested that since the markets are "ready," the Fed should, and will, taper. But the same arguments were made back in September, and Fed officials paid them no more heed back then”.