Salient to Investors:
James Bullard at FRB of St. Louis said the Fed should wait for evidence the labor market and economy are strengthening before tapering purchases.
Bullard said the Fed will probably hold mortgage-backed securities among its assets longer than it had expected and make a decision on what to do in two years.
Half of 54 economists surveyed last month expect tapering to begin in September.
Mohamed El-Erian at Pimco said today makes it less likely the Fed tapers in September as the labor market continues to improve at a frustratingly modest pace, while some indicators suggest improvement is very fragile.
Esther George at FRB Kansas City continues to warn that record accommodation may create financial and economic imbalances and increase long-term inflation expectations, and cautioned about excessive use of margin accounts at broker-dealers and leveraged loans, or packages of higher-risk commercial loans.
Read the full article at http://www.bloomberg.com/news/2013-08-02/fed-s-bullard-urges-wait-for-2nd-half-rebound-before-tapering.html
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