Things are going to get tougher for people looking for easy money. Tapering will go on as per schedule another 10 billion dollars cut will be in the offing tonight.That will make it a total of 30 billion dollars or 55 billion will be the monthly purchase.Surprise, would be the Feds thinking of speeding this to 20 billion dollars cut this month, then we can see some serious corrections world over which is overdue.That will correct the markets somewhat as it is being propped up by this easy money.
Another aspect to be noted would be if they are going to do away with the labor figures linked interest hike, will the do away with the 6.5 percent unemployment figure.They might do so, which will leave the market in doubt as to when they can see an interest hike. Inflation is creeping up and they might just try to nip it in the bud.A rate increase of 0.25 percent will have a cooling effect and the economy can with stand it too.This would be in effect the acid test whether the economy has improved or not.
Japan too is in the mood for tapering as was conveyed by their board member today. The figures coming out from europe too will show that the economy is improving and things should revert to normal as soon as possible.Putting an economy too long on artificial respiration is bad for it as it would get used to the support and later cannot do without it.
We can see a smiling grandma at the end of the day , who should and will deliver a pragmatic report, unlike her predecessor who believed printing money was the way out of the country's economical and financial woes.
Another aspect to be noted would be if they are going to do away with the labor figures linked interest hike, will the do away with the 6.5 percent unemployment figure.They might do so, which will leave the market in doubt as to when they can see an interest hike. Inflation is creeping up and they might just try to nip it in the bud.A rate increase of 0.25 percent will have a cooling effect and the economy can with stand it too.This would be in effect the acid test whether the economy has improved or not.
Japan too is in the mood for tapering as was conveyed by their board member today. The figures coming out from europe too will show that the economy is improving and things should revert to normal as soon as possible.Putting an economy too long on artificial respiration is bad for it as it would get used to the support and later cannot do without it.
We can see a smiling grandma at the end of the day , who should and will deliver a pragmatic report, unlike her predecessor who believed printing money was the way out of the country's economical and financial woes.