Salient to Investors:
Caroline Baum writes:
Tapering seems fully priced into the market, and time is not on the Fed’s side.
Vince Reinhart at Morgan Stanley said Fed officials have already paid a high price in terms of market volatility for showing their desire to end QE.
Long-term interest rates are not about to retreat if the Fed delays tapering until October or December.
Jim Glassman at JPMorgan Chase says real long-term rates averaged 2 percent to 2.5 percent before the recession and QE, and the implied 5-yr forward real rate of 1.75 percent shows much of the adjustment in interest-rate markets has been done already.
There is really no quantitative difference between an increase in non-farm payrolls of 162,000 and 199,000. The jobless rate is being driven as much by declining labor-force participation as new hiring
Read the full article at http://www.bloomberg.com/news/2013-08-28/fed-gains-nothing-with-taper-delay.html
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