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20 Mar 2014
Expect tapering to continue through year - Danske Bank
FXStreet (Barcelona) - Jens Nærvig Pedersen, Analyst at Danske Bank comments that as expected, the Federal Reserve yesterday tapered its assets purchases by another USD10bn, bringing it down to USD55bn.
Key Quotes
“However, it took the markets by surprise as it revised higher-the-median projections of its expected rate path by 25bp for end-2015 (from 0.75% to 1.0%) and by 50bp for end-2016 (from 1.75% to 2.25%).”
“The market was pricing a rate path that was even lower than what the Fed was projecting before this meeting. If anything, it reflects confidence in the US economic outlook and underlines that it takes a lot to change that perception.”
“We expect tapering to continue at each meeting for the rest of the year as planned since December.
Key Quotes
“However, it took the markets by surprise as it revised higher-the-median projections of its expected rate path by 25bp for end-2015 (from 0.75% to 1.0%) and by 50bp for end-2016 (from 1.75% to 2.25%).”
“The market was pricing a rate path that was even lower than what the Fed was projecting before this meeting. If anything, it reflects confidence in the US economic outlook and underlines that it takes a lot to change that perception.”
“We expect tapering to continue at each meeting for the rest of the year as planned since December.