Daily Archives: December 18, 2013

Robin Harding

A quick update as the hoopla builds ahead of today’s Fed decision.

Will they taper?

Based on reporting ahead of the blackout period I put the odds of a taper at roughly 50 per cent for December and 50 per cent for January. We’ve been reporting since October that a December taper was still on the agenda so this shouldn’t be regarded as a sudden or unconsidered development.

Since the blackout started there has been a succession of strong data on retail sales, industrial production and homebuilder confidence. We have also had a budget deal. Therefore, I think the chances of a taper today are more than 50 per cent.

It is hard to call this too confidently, however, because the case for waiting is so easy. Read more