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18 Jul 2013
Flash: Fed tapering still likely this year - Westpac
FXstreet.com (Barcelona) - Fed Chairman Bernanke said the future of QE practices is not on a “preset course,” emphasizing, as Sean Callow, FX Strategist at Westpac notes, "that the policy path depends on economic and financial developments."
Callow adds: "Bernanke expects the highly accommodative stance to remain in place for the foreseeable future, but the Fed may begin tapering later this year if the data meet expectations, with purchases perhaps halted it in 2014. But he still sees some strong headwinds from fiscal policy but exert less drag over the future. He added there are still low inflation risks."
Callow concludes by saying: "Fed 'tapering' still seems likely this year but with lots of conditions attached."
Callow adds: "Bernanke expects the highly accommodative stance to remain in place for the foreseeable future, but the Fed may begin tapering later this year if the data meet expectations, with purchases perhaps halted it in 2014. But he still sees some strong headwinds from fiscal policy but exert less drag over the future. He added there are still low inflation risks."
Callow concludes by saying: "Fed 'tapering' still seems likely this year but with lots of conditions attached."