Do you think the Fed will taper this year?

[Rambo35]

A lot of discussions back and forth have talked about this topic since Bernanke first mentioned it which caused a market sell-off. Everyone knows that sooner or later QE will end and that the markets will have to return back to some sort of normal without Fed life support.

Do you think the economy will survive once the Fed starts pulling the plug?

I think as soon as the Fed tapers (which I think will happen by a very small amount this year) we will see the economy contract further and the USD after a brief spike will weaken as well as the economic picture is not as good as the headline figures suggest.

 

[Enivid]

I do not think that current macroeconomic data is good enough to justify QE tampering. I doubt that we will see anything but promises by the end of the year.

 

[Rambo35]

I do not think that current macroeconomic data is good enough to justify QE tampering. I doubt that we will see anything but promises by the end of the year.

I do agree that we will get a lot of talk for sure, but I do not think economic data is good enough. I was against QE from the start, but whenever the Fed tapers equity markets will come crashing down in my opinion.

 

[mumuy]

with the lackluster seen in its recent employment report, I'm sure that the Fed will again start another round of QE....

 

[Fxpipper]

Not going to happen and given the current situation, doubt if it would happen this year or by early quarter next year. There's just no logic to justify the move at present..

 

[Rambo35]

Not going to happen and given the current situation, doubt if it would happen this year or by early quarter next year. There's just no logic to justify the move at present..

From an economic standpoint you are right, but Bernanke may want to do one final dumb thing and taper just because he mentioned it.

 

[Fxpipper]

Hah that is going to happen, it's only a matter of time and no takers yet on what it wold be about.

 

[Rambo35]

We will find out soon enough 🙂