Sealed Case for Continued QE Tapering

“Employment report sealed case for continued QE tapering at March 18-19 FOMC meeting – bigger question is what will happen to forward guidance for fed funds rate. On the one hand, the upside unemployment rate surprise in February leaves open the option of retaining the 6.5% threshold. On the other hand, the January FOMC minutes suggested that a change was coming soon. Moreover, if Fed officials want to go down this route, doing so on March 19 would be natural because it is Janet Yellen’s first meeting as Chair and features a press conference.” (Goldman Sachs)

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