Fed tapering 'could be pushed back to 2014'

A surprise delay in the US Federal Reserve's plans to wind down its QE programme may continue into 2014, fund managers have suggested.

The central bank surprised markets by opting not to slow the pace of its $85bn a month asset purchase programme at its September meeting, pointing to recent bond and mortgage rate rises that could “slow the pace” of the economic recovery. The majority of investors now see the Fed’s December policy meeting as a likely start date for tapering, but others suggest an end to QE is now firmly on the backburner unless economic data improves.  “I do not understand why everyone thinks the taper will come in December now. No-one can hand on heart say that is going to happen,” Henderson head of ...