Even Without Official Fed Taper Some Effects Have Started

While investors continue to debate when the Federal Reserve will taper its asset-purchase program, one analyst told CNBC that they may have missed the boat – tapering may have already begun.

According to Ben Lichtenstein, president of Traders Audio, recent movement in U.S. bond yields, gold prices and the U.S. dollar show that the Federal Reserve may have already started reducing the size of its monthly asset purchases.

“It feels a little odd that all investors and traders are waiting for some sort of announcement from the Fed to signify some sort of change in economic policy. It’s more so the norm that the Fed actually starts to act prior to announcing or making it somewhat public. There is the potential that we are already seeing that right now,” he told CNBC Asia’s Squawk Box on Thursday.

When Fed chairman Ben Bernanke first uttered the T-word in May it sent global markets into a tizzy as investors panicked over how markets would cope without the steady flow of easy money that the Fed has provided since 2008.

via CNBC

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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