As expectations for a December taper ramp up, one analyst told CNBC the Federal Reserve is set to implement a ‘mini-taper’ designed to get the ball rolling before its chairman steps down.
“I think what we’ll see is a mini-taper… I would expect about $5 billion a month starting in December, not exactly the $10 or $15 or $20 billion dollars a month that people had feared. So they are going to kind of split the baby,” Scott Nations, chief investment officer and president of Chicago-based NationsShares, told CNBC Asia’s “Squawk Box” on Wednesday.
Nations said one of the drivers for a December taper is the fact that Federal Reserve Chairman Ben Bernanke will want to start it before his term expires at the end of January.
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