Thursday, December 12, 2013

Cosmetic taper is possible

Now there has been talk about tapering for the last 6-8 months, but in my view if they taper, it will be a very cosmetic gesture and on any sign of further economic weakness, or if asset markets decline again like the stock market drops 10-20 percent they will actually increase the asset purchases. 

My sense is that the Federal Reserve will continue to buy assets in order to try to support the asset markets.