Salient to Investors:
50% of economists expect tapering in September to $65 billion, versus 44% in last month’s poll, 15% in October, and 28% in December. 50% expect the Fed to end QE in Q2 2014, 24% by Q3 2014. 51% said monetary policy is too easy, 10 percent said it is too tight.
Russell Price at Ameriprise Financial said the markets have adjusted to the new information that the Fed is likely to reduce purchases over the near term, and investors believe it won’t be a strong negative for the markets or the economy.
Thomas Costerg at Standard Chartered said job growth is strong and expects tapering in September to monthly purchases to $75 billion.
Christopher Low at FTN Financial said September is about as long as they can wait to taper and expects a cut to $65 billion.
Stuart Hoffman at PNC Financial Services said tapering does not mean that they’re any closer to raising the funds rate, which would be considerably after QE ends.
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