Fed: Chances of September tapering on the increase

Comments from Dennis Lockhart, Atlanta Fed President, that he ‘wouldn’t rule out September’ would seem to have increased the chances that we will see some very small tinkering with the Fed’s massive QE program starting next month. Remember that Mr Bernanke will be stepping down in February so with his legacy in mind, and despite the ‘helicopter Ben’ moniker, he will probably be keen to have the tapering begin on his watch. The US economy has been on the improve but Fed officials will be very wary of reducing fuel levels just as the fire is starting to take hold.

The USD has made steady gains overnight but the market is still long, especially against currencies like the AUD, and I don’t see any minor tapering having a big impact.


  1. Sean, thanks for the news, I can always depend to get accurate and useful information from you, the Nikkei is almost at 14000 (up from 13500) taking the usd/jpy up with it, if you didn’t mention to watch metals a few days back and to be cautious of my usd/jpy Short trades I would be in some Serious PAIN right now, Instead I went in long thanks to you and made 90 pips instead of Losing them! Keep up the posts!

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