Tapering

Fed Funds futures are pricing in about five rate hikes of 25 basis points each in 2022 and a few FOMC members are getting vocal about the need for a 50 bps rate hike in the 15-16th March meet, to start with

Fed stance heightens risks for emerging markets

Pace at which US Fed intends to roll back accommodative monetary policy can unnerve markets. While upbeat wage growth signifies robust demand conditions leading to better earnings prospects, there is a high risk for valuation contraction due to lower liquidity

Why tapering 2013 is different from tapering 2021 

Foreign investors continue to exit Indian markets even though US bond markets are cooling off. If anything, tapering may increase the outflow. 

Fed presses the pedal harder on taper on stronger growth

Fed chair Jerome Powell indicated that the time between the end of tapering and the first rate hike could be short. Interestingly, the rationale for that has less to do with inflation, but more to do with the strong demand environment and labour market tightness

US Fed Governor urges faster pace of tapering as inflation surges

The consumer price index (CPI) rose 6.2 per cent in October from a year earlier, the strongest annual gain in over 30 years, according to the Labour Department.

Fed tapers, but no tantrum

While the “tapering” is steeper than earlier cycle of 2014, Jerome Powell emphasized its need, given that inflation this time is much higher, job openings are better and “demand is very, very strong”.

Fed signals early taper, but there is no immediate impact

The Fed continues to delink interest rate lift-off from tapering. Though the dot-plot of the September meeting hints towards one rate hike of 25 bps in 2022, Powell said “lift-off in policy rates” is not on its radar, as of now

US Fed: Now, one step closer to 'tapering'

The Fed believes that long term inflation expectations are anchored around the 2 percent objective and that’s what matters for policy decisions

US Fed meet ratchets up inflation fears and tapering talk

While the Fed Chair sounded dovish, he dropped hints of a significant change in the macroeconomic context in the last six months which may warrant tapering or rate hike earlier than expected, puncturing the equity rally

Currency devaluation is a short-term fix: JPMorgan

Asserting that India‘s demographics are superb Filippo Gori — Head of Sales and Marketing, Markets and Investors Services Asia-Pacific at JPMorgan — said that stable rupee has contributed to inflow of foreign investors into India.

'Fed easy-policy stance to stay; S&P may breach old highs'

The US Federal is expected to wrap up its bond-buying program by October as scheduled but it is expected to keep interest rates low for longer than previously expected, according to Richard Gibbs, Global Head of Australia-based Macquarie Securities.

US Fed likely to continue USD 10 bn taper programme: CIMB

The Federal Open Market Committee meet on March 17-18, will be the first session under the central bank's new chief, Janet Yellen.

Will Indian equities run out of luck soon? Elara thinks yes

"In our view, an impending Fed taper and a fractured electoral mandate will bring about some moderation in flow data if not outflows. The last time India saw outflows in 2011, the market corrected by 25 percent," the Elara report said.

As India sets election dates, traders brace for stock rally

The benchmark BSE Sensex has gained in the month before elections in each of the previous six elections, with the biggest advance coming in 2009 when the Congress-led United Progressive Alliance won a majority.

Tapering will impact EM currencies, including India: Citi

John Woods, Citi Private Bank says tapering is likely to continue to impact EM currencies. "There is a sense that the US dollar is likely to strengthen as term yields rise and expectations for interest rates move forward. This will have an impact on the valuations of emerging market currencies, including India."

Bad jobs reports won't change tapering: Janet Yellen

In her first public remarks, delivered to the House Financial Services Committee, Yellen said the central bank does not look at economic reports in a vacuum when determining its policy course.

Investors don't panic, current mkt correction healthy: IIFL

According to Nirmal Jain, the probability of a stable government is getting stronger and is driving many good quality investors. He believes at every correction, there are investors looking to buy into the market.

Rupee seen between 62.02-62.83/USD range: Pramit Brahmbhatt

A positive equity will help, but concerns regarding Fed tapering impact on emerging markets will still keep some pressure on rupee., says Pramit Brahmbhatt, Alpari India.

Fed poised for USD 10 bn taper as Bernanke bids adieu

Overall signs of improvement in the US economy suggest Fed officials will stay on track to cut monthly purchases of Treasuries and mortgage-backed securities by USD 5 billion each, bringing the total of their monthly asset purchases to USD 65 billion.

Fed may taper QE by $10bn in today's FOMC meet: JPMorgan

Grace Tam, global market strategist, JPMorgan Asset Mgmt, downplays the emerging market (EM) currency contagion. He says the fall seen is only restricted to Argentina and Turkey which have high inflation rates.

Rupee may fall 2-3%; more positive on India in EMs: StanC

Rob Aspin, Senior Investment Strategist, Standard Chartered Bank says both India and Indonesia are fairly close to the end of the rates hike cycle, so even though economic growth may slow down, net-net it'll be a positive for equities. He is bullish on the healthcare and technology space.

Global economy at a turning point: World Bank

Growth is projected to strengthen to 3.2 percent this year, 3.4 percent in 2015, and 3.6 percent in 2016 - up from 2.4 percent in 2013.

Lessons in Capital Flows from the best in business

Whether it is Lehman or quantitative easing or tapering for that matter, a fact of globalization is global inflows and outflows of funds can have huge destabilizing effects on all economies.

'Don't see change in Fed's taper policy, QE to end this yr'

Robert Parker, Senior Advisor - Investment, Strategy & Research, Credit Suisse (UK) Limited, feels the US Federal Reserve would want to look at data for another 2-3 months and see whether this trend of slowdown continues before changing its current policy on tapering.

Weak jobs data won't stop Fed from tapering: Ex-FSA boss

According to Adair Turner, the employment rate in the US is very low and the unemployment degree is only coming down because there have been a lot of people discouraged and are completely out of the work force.