Tapering

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The new chairman of the Federal Reserve Janet Yellen continued where Ben Bernake left off. On Wednesday evening the it was announced that the Federal Reserve would taper their monthly asset purchases by $10bn in April, as they had in recent months, easing the US economy from the stimulus as growth begins to gain pace. As expected interest rates were left unchanged at the record low of 0.25%, but hinted that rates could rise in 2015, which would be about 6 months after it is has finished its…

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The Federal Open Market Committee (FOMC) minutes will be released today at 7pm (London). Traders are awaiting the release of the December meeting minutes, as it was the first time that the Fed began tapering their monthly asset purchases, a reduction of $10bn for this month. Prior monthly purchases had totalled $85bn, with a reduction to $75bn for this month. The flooding of the markets with cheap money, fuelled by central bank QE, and now the removal of the stimulus have been key them…

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The final trading day of the year is upon us and the end of 2013 is in sight. Trading volumes are expected to be relatively low until after the Christmas/New Year lull. The year in the financial markets, will most likely be remembered for the positive of exiting financial crisis mired by scandals of fixings in a variety of markets. What to expect in 2014? The UK and US economies are predicted to grow, unemployment to trend lower and the timing of tightening economic policy…

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The FOMC concludes their two day meeting today and will announce if they will reduce their monthly asset purchases from $85billion ($40bn MBS and $45bn Treasury’s). It is the final meeting for Ben Bernanke the current Chairman of the Fed, with his successor expected to be hawk Janet Yellen. At 7pm GMT the interest rate, economic projections and most importantly the level of asset purchases will be announced. In the Bloomberg survey of economists, 35% expect the Federal Reserve to…

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The US Federal Reserve currently purchases $85 a month of assets, combined with low interest rates to help stimulate economic growth. The markets speculation as to when the Fed will begin to Taper, this programme of quantitative easing has some believing it could be on Wednesday at 2pm. The main focus for traders this week, before the holiday lull, will be does Bernanke start tightening at his final meeting as Chair of the Fed, before Janet Yellen takes over. The markets are awash with…

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