Questions over whether Fed will start tapering this November

Analysts are conflicted on the date of tapering

The Federal Reserve yesterday held interest rates near zero while indicating that an easing of market supports will likely begin this year if economic progress continues as expected.

However, analysts are conflicted as to whether the end of Fed's purchases of $120 billion of assets monthly ($80 billion Treasury securities and $40 billion mortgage-backed securities) will be announced at the next Federal Open Market Committee (FOMC) in November. "We believe the only thing that could block its tapering program would be a meaningful hiccup in the labor market or geopolitical arena,"said Thornburg co-head of investments and managing director Jeff Klingelhofer. "In either case, we see this as a high bar for the Fed to delay its tapering plans." However, Tiffany Wildi...