Faster taper – limited impact

Content Type
Policy Brief
Institution
Oxford Economics
Abstract
Markets took fright after Ben Bernanke's press conference on 19 June at the prospect of an early end to QE. Bond purchases might be tapered off sooner, as the Fed now expects unemployment to fall to its target of 6.5% next year rather than in 2015. It is not yet clear whether any of the bonds bought as part of QE will eventually be sold off. While it is obvious that an end to the Fed's purchases will have an impact on output growth and asset prices, our Global Economic Model shows that the effects will be limited.
Topic
Markets, Global Recession, Labor Issues, Financial Crisis
Political Geography
United States