Practical analysis for investment professionals
12 September 2013

Poll: Will the Fed Announce Plans to Follow Through with the “Taper” of Bond Purchases?

Posted In: Economics

In a poll conducted earlier this week in the CFA Institute Financial NewsBrief, we asked readers what outcome they expect from the upcoming Federal Reserve meeting.


Poll: Will the Federal Reserve announce plans to follow through with the “taper” of bond purchases at its next meeting September 17 and 18?
Poll: Will the Federal Reserve announce plans to follow through with the "taper" of bond purchases at its next meeting Sept. 17 and 18?


All eyes will be on Federal Reserve Chairman Ben Bernanke at the upcoming Fed meetings September 17 and 18. Since the Fed first indicated interest in “tapering” off bond purchases in May, the U.S. Treasury yield curve has shifted upward by more than 100 bps — increasing mortgage rates by a commensurate amount. The Fed’s interest in tapering appears driven by an apparent recovery in the US economy, particularly in housing. Housing prices continue to increase (up 12% annually as of July), creating hopes that the economy will move more firmly to self-sustaining growth. Nevertheless, mortgage applications are down about 50% from where they were just before the taper was announced (in response to higher mortgage rates).

Finally, the exit from the Fed’s unprecedented policy response to the financial crisis of 2008 is now being put to the test. So we asked investors if they think the Fed will follow through on the taper. Of 780 respondents, 63% expect the Fed to follow through with the taper and the remainder expect the Fed to hold out.

For more on this topic: At the CFA Institute Fixed-Income Management Conference in Boston on 17–18 October, James Grant of Grant’s Interest Rate Observer will discuss the causes and consequences of interest rates and how ZIRP, QE, and Twist are not unprecedented.


Please note that the content of this site should not be construed as investment advice, nor do the opinions expressed necessarily reflect the views of CFA Institute.

About the Author(s)
Ron Rimkus, CFA

Ron Rimkus, CFA, was Director of Economics & Alternative Assets at CFA Institute, where he wrote about economics, monetary policy, currencies, global macro, behavioral finance, fixed income and alternative investments, such as gold and bitcoin (among other things). Previously, he served as SVP and Director of Large-cap Equity Products for BB&T Asset Management, where he led a team of research analysts, 300 regional portfolio managers, client service specialists, and marketing staff. He also served as a Senior Vice President and Lead Portfolio Manager of large-cap equity products at Mesirow Financial. Rimkus earned a BA degree in economics from Brown University and his MBA from the Anderson School of Management at UCLA. Topical Expertise: Alternative Investments · Economics

2 thoughts on “Poll: Will the Fed Announce Plans to Follow Through with the “Taper” of Bond Purchases?”

  1. Robert Fantozzi says:

    They must taper to stay in ratio to Treasury issuance. The reduction in front end Treasury debt will complement non existent inflation and slack credit demand. There will be a reduction of Treasury purchases to avoid additional easing but NO TAPER in mortgages.

  2. mehboob ali says:

    who can apply CFA ????
    what is their Eligibility………

Leave a Reply

Your email address will not be published. Required fields are marked *



By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.

Close