Salient to Investors:

Richard Fisher at FRB of Dallas sees the end of a 30-year rally in bonds so the Fed should taper QE with housing in good shape, construction has resumed, and housing prices are appreciating significantly. Fisher said the market has begun to discount that this will not go on forever.

Esther George of FRB of Kansas City urged the Fed to begin slowing the stimulus as growth quickens and low interest rates encourage investors to take on more risk. George said waiting too long to acknowledge the economy’s progress and prepare markets for more-normal policy settings carries no less risk than tightening too soon.

Joseph LaVorgna at Deutsche Bank expects the Fed to trim its monthly asset purchases by almost a third in September if the labor market continues to strengthen.

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Joseph LaVorgna, Deutsche Bank AG’s chief U.S. economist.