Wall Street analysts are now expecting the central bank to speed up its timetable to begin withdrawing its $85 billion in monthly bond purchases, from the end of the year to as early as September.
Stephen Stanley of Pierpont Securities said the latest data “puts the nail in the coffin” for the Fed to taper its quantitative easing in the fall, barring any sharp cuts in job creation in the next month.
Stanley said he has noticed a recent change in the Fed’s tone that has spurred more chatter about a faster tapering process, even though the economic data has not changed dramatically.
“What we’ve seen from the Fed is that they’ve started to realize that QE was really not doing much good for the economy and was creating a lot of risks in the financial markets,” he told Bloomberg radio on Friday.
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