real-time news and commentary for investors
Wednesday, Sep 18
Fed could cause volatility if it decides not to taper
- The FOMC is expected to slice $10-20B from its its $85B-a-month bond-buying program at its policy meeting today, but what if it doesn't?
- U.S. bond yields could drop back towards 2% "really fast," says Bill Smith, CEO of SAM Advisors. It would "catch people by surprise and the bond market will absolutely rip," Smith asserts. "The equity markets would rally on this; it just means more easy money."
- The dollar would also be hit, says BNP Paribas' Vassili Serebriakov, while BK Asset Management's Kathy Lien reckons that the volatility that non-tapering would cause could threaten the overall economy.
- Despite the obsession in the financial world with the Fed's quantitative easing, just 27% of respondents in a poll could identify what it is from among five choices.