Dudley suggests taper off until 2014

|By:, SA News Editor

"We have yet to see any meaningful pickup in the economy’s forward momentum,” says FRBNY chief Bill Dudley, explaining the decision not to go forward with the taper last week. His comments suggest his current thinking has the taper on hold until 2014:

"As we move into 2014, the fiscal headwinds should abate somewhat.  As that occurs, the improving underlying fundamentals of the economy should begin to dominate, pushing up the overall growth rate.'

“I’d like to see economic news that makes me more confident that we will see continued improvement in the labor market. Then I would feel comfortable that the time had come to cut the pace of asset purchases,”