Analysis on Tapering QE3 via Calculated Risk

Last month there were quite a few analysts predicting the Fed would start tapering off QE purchases in June. My response was Three words: Will Not Happen.

Now we are seeing a flurry of articles with headlines suggesting reducing the monthly purchases of assets is "close" or "near". It depends on the definition of "close" or "near", but it is clear tapering will not happen until later this year at the earliest. Here is the key quote from Bernanke:

Read more...Calculated Risk: Analysis on Tapering QE3