One of the key drivers of the improved market sentiment since December has been that the US Fed has been very consistent in its messaging. Indeed every meeting since then, Janet Yellen and her colleagues have reduced the level of monthly asset purchases by USD10 billion. However, before this process is completed in October, it is likely that the US central bank regional presidents may throw away to communal song sheet and come out with their own views about the tightening cycle. Already there appears dissent about when to pull the policy lever and this is likely to spark increased policy uncertainty and volatility in markets between the date that tapering ends and the Fed announces higher rates. After this, investors will change focus to the improving US economy, but a lot of water has to go under the bridge before we reach that stage. Read our overnight report: (VIEW LINK)