Jeff Rosenberg, Managing director and chief investment strategist for fixed income at BlackRock has revealed his expectations regarding two key questions about the upcoming Fed meeting. Firstly, on the issue of whether the Fed will begin its taper in September, he said we expect the Fed to begin reducing its pace of purchases of securities (both mortgages and Treasuries) and to announce this change at the conclusion of its September 17-18 two-day meeting. On whether the markets will have another taper tantrum which occurred in June when markets faced sustained selloffs due to news of the taper he answered negatively and said should we see weaker-than-expected economic data, it might push back the starting date for the beginning of the end of the Fed's program of purchases. Crucially, however, a likely September start to tapering is the consensus expectation-hence it is already priced in. (VIEW LINK)
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