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We could see ‘small taper’ this month – Fed official

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Mortgage Professional America | 09 Dec 2013, 11:24 AM Agree 0
St. Louis Fed President James Bullard says recent encouraging economic data makes it more likely that the Fed will reduce its bond-buying program at least slightly this month.
  • Lee in CA | | 09 Dec 2013, 12:14 PM Agree 0
    Atlanta Fed President Dennis Lockhart said “December certainly is a meeting in which the issue can be addressed, but I want to be quite confident the economy is on the track I believe it is on...” “It is a strong quarter,” Lockhart said, adding it “doesn’t make a trend.”
  • Lee in CA | | 09 Dec 2013, 12:16 PM Agree 0
    Of course, it will be discussed. It has been at every meeting. But not only do economist believe tapering will be postponed, even the Fed is concerned that it may be too early to call the recent bout of good economics news a "trend".
  • Mendota | | 09 Dec 2013, 01:32 PM Agree 0
    Not only that, but Yellen has already pledged her commitment to keeping the status quo and maintaining the current $85 billion in place. She said exactly that during her testimony. No tapering will occur. In fact, if you read John Mauldin's weekly commentaries on the markets, many economists around the world believe we are eventually going to see QE expand, not taper. The patient is on life support and QE is the drug that is keeping the patient alive. Even with this drug in place, the economic numbers are fragile. Removing the drug at this point will kill the patient.
  • James Wojtaszek | | 09 Dec 2013, 02:25 PM Agree 0
    The question we should be asking is what happens with the mortgage rates when QE is eliminated? With the QM & QRM coming in January that is going to affect the mortgage process and make mortgages more expensive for customers and may even deter them from buying. And we need to address what Obama care is going to do to the economy? With companies increasing their cost for insurance. This may lead to higher unemployment which therefore will make those numbers climb. And what kinda jobs are being offered in those numbers are they part time or full time and if full time how much has that income gone down? Without the answer to these questions we cannot move forward as a Nation. And keep in mind the Government has to budget in January as well which means they are going to cut or eliminate entitlements. So the economy is in shambles until at least of the middle of next year!
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