The US dollar fell sharply against most major opponents in the Asian session on Tuesday, even though the possibility of reduction in the Federal Reserve's bond purchase program loomed near.
Following a raft of upbeat US economic data last week, the traders have been pricing a withdrawal of stimulus measures in the near future. The comments from Federal Reserve officials yesterday supported the view that Fed may start tapering as early as next meeting.
Following a raft of upbeat US economic data last week, the traders have been pricing a withdrawal of stimulus measures in the near future. The comments from Federal Reserve officials yesterday supported the view that Fed may start tapering as early as next meeting.
The Federal Reserve may taper their USD85 billion dollar per month asset purchase plan next week in response to better-than-expected jobs growth, said James Bullard, the president of the St. Louis Federal Reserve Bank.
A small taper might recognize labor market improvement while still providing the [Fed] the opportunity to carefully monitor inflation during the first half of 2014," Bullard said.
The risks associated with the Federal Reserve's unprecedented support measures are beginning to outweigh further benefits, according to Richmond Fed President Jeffrey Lacker.
No comments:
Post a Comment