Flash: Crossed wires over tapering? - BBH

FXstreet.com (Barcelona) - Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman notes that many observers seem to think there is a direct line between these stronger economic reports and Fed tapering.

Key Quotes

“We are not as sanguine. The case against December tapering had three planks.”

“Admittedly, the clarification of the fiscal situation removes one of the planks. However, the other two planks are even more important. The first is that inflation is very low. The core PCE deflator, the Fed's preferred measure, is lower now than several months ago, when the FOMC upgraded its concern about disinflation.“