Goldman Expects Fed to Taper in March 2014

Following the weaker-than-expected U.S. unemployment report for September, the Federal Reserve will likely delay tapering its $85 billion-a-month bond-buying program until March, according to Goldman Sachs.

“Although December remains a possibility, this report makes it more likely that the Fed pushes the first reduction in the pace of its asset purchases into 2014,” economists at the bank wrote in a note late Tuesday.

“While the uncertainty is considerable, we think that March is the most likely date under our economic forecast, and the assumption that the next set of fiscal deadlines proves less disruptive than the most recent set,” they added.

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza