•The Fed’s Fisher says he would back a ‘clear path’ for QE when tapering starts
This is the big shift in Fed rhetoric this month because it means that when a taper announcement comes, it won’t just be a taper announcement but a roadmap to wind down the program.
Plosser, Fisher, Williams and Lockhart are all on board, at least partly.
Two weeks ago they were all on saying, we will taper at some time in the future in the amount still to be determined for a duration that we aren't sure about...Yup...clear as mud.
They can't taper......ever.....They're stuck in a box with no exit strategy. The stock and bond markets are telling us interest rates will go up, and the stock market will correct more than the Fed wants. Therefore, they cannot and will not taper.
This was described n the last FOMC minutes.
They're preparing the market for it already. Taper not tightening. Tapering QE still means ZIRP is around. Tapering slow. Tapering will be based on a preannounced program so there are no surprises.
Tapering is coming in December.