Taper Tantrum
11/07/2013 | | Economic forecasting, Eisenberg and housing economics, Eisenberg and public speaking, Elliot eisenberg, Federal Reserve Board, Graphsandlaughs, Inflation rates, MLS, Multiple listing service, Public speaking economist, UNemployment rates, econ70, economist on TV, economist on radio, eisenberg and economics, funniest economist, funny housing economist, graphsandlaughs and eisenberg, housing sales, mortgage banking, politics and economics, tapering
For the Fed to taper their purchases of Treasuries and MBS, GDP growth needs to be above 2.5%, net new job growth needs to approach 200,000/month, the annual inflation rate should be nearing 2%, and the unemployment rate should be below 7.3%. These thresholds are still a ways off. Thus, the probability of a December taper is just 15%, but it is highly likely that tapering will commence by March.