Watch the interview of Paul Edelstein, Dir-US Fin Economics, IHS Economics with Menaka Doshi on CNBC-TV18, in which he discussed about the US GDP data and jobless claims data.
In an interview to CNBC-TV18, Paul Edelstein, Director of Financial Economics at IHS Global Insight, spoke about what to make of those Federal Open Market Committee (FOMC) minutes and that entire taper talk.
Until the Fed sees a longer term budget agreement at least going up for the rest of the year, the Fed is not going to taper and it is going to take a couple of months in 2014.
Fed has a last chance to taper in middle of December in a situation where the shutdown ends, debt ceiling is raised for a year or two and labour market data looks good. It is more likely they might wait into 2014 when Janet Yellen takes over, says Paul Edelstein, Director-Financial Economics.
Paul Edelstein, director-financial economics at IHS Global Insight says, the Fed is trying to keep their powder dry to see if some of the downside risks start to turn up in the jobs numbers and inflation numbers.
The number of Americans filing new claims for jobless benefits dipped last week, indicating the economy is plodding along even though headwinds from Europe cut into US factory activity growth this month.