We weren’t surprised by the Fed’s decision to begin tapering its monthly asset purchases, but we didn’t anticipate that it might not halt those purchases completely until late next year. As the tapering process will be more gradual than expected, it follows that the first rate hike will come later too. Indeed, the Fed has said that lift off now won’t happen until late 2015, although it could still be forced to begin raising rates sooner than that.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services