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

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Fed Gains Nothing With Taper Delay