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20 Mar 2013
Fed Preview: No QE exit before the end of 2013 - Luciano Jannelli
FXstreet.com (Barcelona) - No change in the Fed's monetary policy is expected in March, as the situation in the US still remains uncertain: the recent NFP gains, although decent, do not reflect a steady improvement on the US labor market and the full impact of the sequester on the economy has not become apparent yet.
Therefore, Luciano Jannelli, Ph.D., Chief Economist at MIG Bank, does not expect the Fed to abandon its asset purchase program before the end of 2013, as the Fed will continue looking out for signs of stable recovery on the labor market and “would like to have some more clarity about the impact of the sequester on the US business cycle.”
He adds however that “the very fact that there is talk about QE exit, while other major central banks are poised to add stimulus, is bullish for the US dollar.”
Therefore, Luciano Jannelli, Ph.D., Chief Economist at MIG Bank, does not expect the Fed to abandon its asset purchase program before the end of 2013, as the Fed will continue looking out for signs of stable recovery on the labor market and “would like to have some more clarity about the impact of the sequester on the US business cycle.”
He adds however that “the very fact that there is talk about QE exit, while other major central banks are poised to add stimulus, is bullish for the US dollar.”