Fed Signals Possible Slowing of QE Amid Debate Over Risks – Bloomberg 02-20-13

Salient to Investors:

Michael Hanson at Bank of America said a gradual reduction in Fed purchases may win the FOMC’s support because it gives policy makers flexibility, and the minutes show tapering is a likely outcome at some point in the future. Hanson said tapering the purchases allows the Fed to calibrate how the market reacts to its actions without having to go cold turkey.

Jim O’Sullivan at High Frequency Economics said the Fed is changing the debate to when to scale it down rather than where it suddenly ends.

Gary Stern said Bernanke is waiting to see improvement in employment and is not yet too concerned with the costs.

Read the full article at http://www.bloomberg.com/news/2013-02-21/fed-signals-possible-slowing-of-qe-amid-debate-over-risks.html

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