U.S. Markets closed

Fed Tapering Can’t Happen Soon Enough: John Mauldin

Fed Tapering Can’t Happen Soon Enough: John Mauldin

As next week's quarterly meeting of the Federal Reserve draws near, expectations are piqued as to whether or not the nation's rate-setting panel will finally say something conclusive about its plans to wind down its $85 billion a month bond buying program.

For Fed watcher John Mauldin, the Fed's statement and Ben Bernanke's press conference on June 19th are apt to offer something for everyone.

"I expect a statement that will give those that want tapering and those that don't want tapering, something to hope for," the head of Mauldin Economics says in the attached video. "The Fed is doing everything it can to not telegraph its moves."

As he sees it, rates are going to stay low for the foreseeable future even if the Fed trims its easing budget to $75 billion a month, or leaves it alone.

"I don't think it's going to make that much difference for the rest of this year," this outspoken Texan and best-selling author says. "From my point of view, it can't happen too soon. The longer you try to maintain an imbalanced situation, the bigger the train wreck that you have when it ends."

Of course the other big question looming over the Fed right now concerns Bernanke himself, and whether the two-term Fed chief will sign up for a third term or ride off into the sunset in pursuit of riches.

"My expectation is that it will be Janet Yellen," he predicts, adding that he thinks the only reason Bernanke would stay around would be if President Obama asks him to.

"If the President asks you to do that, it's very difficult to say no," Mauldin says, pointing out that it all depends on how much the President feels he needs him.

"And I don't think anybody knows the answer to that."