Do you think the Fed will taper this year?

 

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.

 
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.

Which discussion exactly? Can you point out?

 

I think it will all depend. The initial announcement that he made, was just a test to gauge the reaction of the various markets. Central bankers often use these comments to test and see before they make their actual decisions. After that announcement for example the stock market made further gains, so that increases the likelihood of tapering sooner rather than later.

 

Hello there? Any specific quotes, Rambo35?

 
MaksymGra:
Hello there? Any specific quotes, Rambo35?

Here is one article that might help : QE Tapering and the Federal Banks effect on the stocks market | stocks.com | Stocks.com