Fed Chairman Bernanke’s semi-annual testimony included fairly explicit comments on QE tapering. The FOMC may taper QE in 2013 and halt it around mid-2014. Admittedly this is also non-committal – it is possible tapering starts later this year, but it is not set in stone. The comments tend to suggest that expectations for tapering at the July FOMC meeting are premature, action later in the year looks more likely, we continue to pencil in a September announcement. The comments also suggest that there would probably be a 6-9 month lag between the start of tapering and an outright stop to QE.
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