3 Jun 2013
Flash: Fed taping to commence in autumn - TD Securities
FXstreet.com (London) - In a report written by Cristian Maggio at TD securities in rates and FX Research, they said that they continue to expect that the Fed will start tapering QE in autumn, but monetary tightening in the US remains more than a couple of years ahead.
In the meantime, they feel that a realization in QE may start to be tightened sooner than expected creates headwinds for both stocks and bonds over the near-term, which also has heavy implications in EMFX terms, but the data mix continues to suggest that the Fed cannot pull back anytime soon. So, they expect the Fed to reduce the rate of Large Scale Asset Programme as soon as in September and, if inflation and growth allow, ending those purchases in early 2014. But they don’t expect the Fed to raise rates before late 2015.
In the meantime, they feel that a realization in QE may start to be tightened sooner than expected creates headwinds for both stocks and bonds over the near-term, which also has heavy implications in EMFX terms, but the data mix continues to suggest that the Fed cannot pull back anytime soon. So, they expect the Fed to reduce the rate of Large Scale Asset Programme as soon as in September and, if inflation and growth allow, ending those purchases in early 2014. But they don’t expect the Fed to raise rates before late 2015.