25 Jul 2013
Flash: Inclination to back off QE has not waned – TD Securities
FXstreet.com (New York) - The Fed’s inclination to back off QE has not diminished one iota – what has changed is how the Fed is managing that message, notes the TD Securities Team.
Key quotes
“Factors driving forward based policy regime key to evolution of policy – recent economic and inflation data less relevant to timing or inclination to taper.”
“Bernanke may appear to be the mad scientist, but results speak volumes. Consensus expectations for $20B in tapering have shifted to September, but stocks remain at record highs.”
“Nothing will emerge at this meeting to alter our assumption that tapering begins this September, but efforts to gain more traction on forward guidance would prove good for bonds and stocks, less so for the USD.”
Key quotes
“Factors driving forward based policy regime key to evolution of policy – recent economic and inflation data less relevant to timing or inclination to taper.”
“Bernanke may appear to be the mad scientist, but results speak volumes. Consensus expectations for $20B in tapering have shifted to September, but stocks remain at record highs.”
“Nothing will emerge at this meeting to alter our assumption that tapering begins this September, but efforts to gain more traction on forward guidance would prove good for bonds and stocks, less so for the USD.”