13 Jan 2014
Flash: A slower taper? - Rabobank
FXstreet.com (Guatemala) - Strategists at Rabobank explained that last Friday’s disappointing nonfarm payrolls may have raised the risk of a slower taper schedule.
Key Quotes:
“…but we think that one data point is not sufficient to throw the FOMC off course. Our baseline forecast is that the FOMC will decide to end QE3 in December 2014, after tapering by $10bn at each meeting (except for a final $5bn at the December meeting)”.
“The ongoing recovery and the Fed’s tapering should push up longer-term rates during the course of the year. We expect the FOMC to announce its first hike in December 2015”.
Key Quotes:
“…but we think that one data point is not sufficient to throw the FOMC off course. Our baseline forecast is that the FOMC will decide to end QE3 in December 2014, after tapering by $10bn at each meeting (except for a final $5bn at the December meeting)”.
“The ongoing recovery and the Fed’s tapering should push up longer-term rates during the course of the year. We expect the FOMC to announce its first hike in December 2015”.