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Tuesday, July 30, 2013

5 reasons the Fed's taper will begin in September

Sober Look: 5 reasons the Fed's taper will begin in September

Little doubt remains at this stage that the Fed will begin slowing its securities purchases this September. The central bank under Bernanke's leadership has been highly focused on data and will consider the following 5 broad indicators to reach its decision.

1. Labor markets: As Bernanke recently pointed out, with respect to labor markets the hurdle for reducing purchases is lower than for raising rates. The FOMC will be looking for improvements in demand for labor in the US and will find it in these data:

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