In the US, positive economic news continues to roll in, throwing into question the timing of the Fed's much anticipated (or feared) tapering plans

Jay Soloff

In the US, positive economic news continues to roll in, throwing into question the timing of the Fed's much anticipated (or feared) tapering plans. First off, GDP was revised significantly higher to 3.6%, up from 2.8%. The big upward revision came from a much higher than expected expansion in inventories. It could be a sign that business are expecting stronger consumer demand in the weeks ahead. In other news, jobless claims fell to 298,000 - down from 321,000 the week before. However, the Thanksgiving holiday likely had something to do with the bigger than expected drop in initial claims. Now the question becomes, how soon will the Fed taper its bond buying program? Is the economy gaining enough steam for the Fed to ease off the gas pedal? Another important data point comes our way tomorrow when November non-farm payrolls are released.


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