, Columnist
Fed Gains Nothing With Taper Delay
The Federal Reserve should start tapering its program of quantitative easing starting in September because it gains nothing by a delay.
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The best argument I've heard for the Federal Reserve to begin reducing the size of its monthly asset purchases (otherwise known as quantitative easing) at its Sept. 17-18 meeting is to get it over with. That's the gist of what Vince Reinhart, chief U.S. economist at Morgan Stanley, said in a research note to clients this week.
"Fed officials have already paid a high price (in terms of market volatility) for expressing their desire to see the back of QE. It is their responsibility to explain how they will extricate themselves from the program."