Bullard: No reason to hurry taper


The Fed can afford to be deliberate, St. Louis Fed chief Jim Bullard - speaking from Jackson Hole - tells CNBC. His dovish stance on the taper isn't news, but stands in contrast to Dennis Lockhart. Speaking earlier from the resort, Lockhart indicated his comfort with commencing the taper in September.

Bullard's concern (a valid one, it appears) is that - in the market's mind - tapering and tightening are seen as one and the same. Indeed. Short-term interest rate markets are pricing in a Fed Funds rate 125 bps higher in September 2015 than now - either a great buying opportunity in fixed-income or the FOMC is not to be believed in its insistence of ZIRP deep into 2015.

Short-duration Treasury ETFs: SHY, SHV, IEI, BIL, TUZ, FIVZ, DTUL, VGSH, DTUS, DFVS, DFVL, SST, ISTB, TBZ.

Broad fixed-income: AGG, BND, LAG, SCHZ, BOND, SAGG, MINC.

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Comments (4)
  • june1234
    , contributor
    Comments (3830) | Send Message
     
    They'll both be on Oprah next week
    23 Aug 2013, 10:00 AM Reply Like
  • The_Hammer
    , contributor
    Comments (4806) | Send Message
     
    what a freaken waste of time. Taper? what? from $85 billion a month to 75 billion? They are still buying a good portion of treasury debts issuance CUZ noone really wants the longer dated stuff. game is up, but the markets are so scalp deep into dollar reserves worldwide that noone wants to flinch first but exit via the backdoor.
    23 Aug 2013, 11:54 AM Reply Like
  • mobyss
    , contributor
    Comments (2405) | Send Message
     
    $10B per month, then $15 on the last "installment" gets you to zero in 8 months - mid 2014.
    23 Aug 2013, 12:54 PM Reply Like
  • The Geoffster
    , contributor
    Comments (4276) | Send Message
     
    Who would buy new issuances and the junk still on the table?
    23 Aug 2013, 03:00 PM Reply Like
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