CNBC Survey: Fed Taper Expected Soon

Wall Street has tightened its view of Federal Reserve policy in the months ahead and is now looking on average for the taper, or reduction in Fed stimulus to the economy, to come in February, according to the CNBC Fed Survey for December.

The expectation for February is two months earlier than the average in the CNBC survey in October, but most of the 42 respondents are actually more hawkish. A full 55 percent see the Fed tapering its bond purchases in January or December. That was the forecast of only 16 percent of respondents in October.

“The budget deal makes a taper more likely,” John Donaldson of Haverford Trust wrote in response to the survey. Fed Chairman Ben Bernanke “was very pointed during his September press conference that the budget/debt ceiling mess was a concern to the FOMC. This deal removes that concern and opens the door to a taper.”

CNBC

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.