Dec 9, 2013

Bring on the taper, we can handle it (it’s all in the payrolls report)

After the upheaval of a government shutdown, the US economy is ready to taper off the Federal Reserve's US$85 billion asset purchase scheme, writes Business Spectator's Callam Pickering.

Job creation in the United States maintained its pace during November and beat market expectations. It was a payrolls report that will spark further discussion of when the US Federal Reserve will begin tapering its US$85 billion asset purchase program. But it wasn’t all good news on Friday, with inflation slowing to a level that may raise some concerns within the Fed.

The report confirms what has been suspected for several months, conditions in the labour market have improved. The market proved its resilience during the 16-day government shutdown in October, which threatened to unravel consumer and business confidence. Instead, businesses continued to hire at a solid — if unspectacular — pace during October and November.

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One thought on “Bring on the taper, we can handle it (it’s all in the payrolls report)

  1. john2066

    I dont really get this article.

    We’ve been told for years by the goldbug nutters that hyperinflation is just around the corner, and the dollars being debased etc. And yet this report shows, again, that inflation is plumbing historic lows.

    With inflation so firmly and repeatedly low why is it imperative to start the taper?

    Our problem is too little inflation, not too much, and the economy continues to slumber.

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