Taper is announced, and begins, September with the first reduction in monthly purchases of $15 billion ($10Bn cut in TSY purchases, $5BN cut in MBS), eventually tapering to nothing in June 2014 when the Dealers believe QE formally ends. Bill Hubard discusses; http://mobile.businessweek.com/videos/2013-08-22/fed-to-announce-20b-taper-in-september-hubard
Holy crap this is MASSIVE news.....So they're really going to do it .......Wonder how the markets will react to this?
they will print to the point of total collapse there's no other choices left for them now just start a countdown P.S. stop listening what these noise creators tell
Ye I think they will still raise the debt ceiling then just continue printing until the wheels fall off..
They're trying to talk the markets down. We all know they have no choice but to continue. Either way they go the US economy is heading for a total collapse. Printing money just buys a bit more time.
The markets reaction to the news of a probable taper have been disappointing to say the least. One would think that there would be more of a sell off in bonds, shares and PMs while the US dollar would rally.
I'm surprised thers not more reaction going on to the metals or the markets.....Why is it so flat at moment?
The Fed released the survey of its Primary Dealers and that is what the conclusion was. Whether or not they follow through is the big question. Survey results here- http://www.newyorkfed.org/markets/survey/2013/July_result.pdf This is probably the only tapir we'll actually see
They might do a Japan and stop the QE for a while - watch the economy sink - start up QE again until the economy improves - then stop QE - economy goes down... I'm pretty sure they got a shock when interest rates shot up recently - the Fed is almost at the point of losing control of interest rates completely
Someone should let a bunch of those loose in the Fed building as a prank and watch the reaction and chaos.