Tapering is already priced in to a large extent
If we consider Bernanke’s May Speech being the first – and
failed – attempt to prepare markets for an end of QE: What would be a
better way out?
Nouriel Roubini : At this time, the tapering is already priced in to a large extent,
yields might go up a little more when they actually do taper. But I
would not expect huge jumps. The tapering decision itself will be
sweetened by keeping the conditions data-dependent and state-contingent
rather than time-dependent. They won’t say, we start today and will be
done with all QE in a certain amount of months. - in www.fuw.ch
Nouriel Roubini is an American professor of Economics at New York University`s Stern School of Business and chairman of RGE Roubini Global Economics
