QE Tapering Is Not on the Horizon: Newedge's Robin

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Nov. 26 (Bloomberg) -- Newedge's David Robin and JPMorgan Private Bank's Jonathan Shelon discuss the outlook for Federal Reserve monetary policy. They speak with Pimm Fox on Bloomberg Television's "Taking Stock." (Source: Bloomberg)

Global access investment team at jpmorgan private bank.

Janet yellen expected to be confirmed as the next head of the federal reserve.

Jobs, jobs -- the next big thing for janet yellen, not asset prices?

I think she has made it clear that she is single-mindedly focused on jobs and not any other data point.

The fed is taking the policy back message that rates will be on hold.

It is certainly part of the discussion.

I think we all knew that janet yellen was going to be on the side of chairman and bernanke.

I think that she made it clear from her testimony that she was even further to the dove-ish side.

Her commitment is pretty solid to regenerating economic growth.

I think the markets are clear on that message as well.

Jonathan shelon, do you agree?

I do.

I think that david is spot on.

When this taper talk first occurred, he had people saying that the end of qe was a necessary and sufficient condition for rates to start rising.

What we have seen since september is the markets no longer believe it.

Tapering is not tightening?

That is right.

They have changed rates.

They may not rise from a market viewpoint until late 2015. mission in kabul is.

-- michelle accomplished.

David, do you think the federal reserve understands how difficult the task is to on why the balance sheets and they are not going to worry about that short-term?

They are just going to write out the volatility?

I think they recognize the difficulty in managing the message that tapering is not tightening.

It is very difficult to separate those two.

Even though there is going to be unwinding, there is a relatively high level of interest in starting tapering at some point.

Until the economic message is clear and the growth path is convincingly sustainable i do not think they will take the risk of tapering and risk again the may situation of losing control of the expectations.

So at the point where the federal reserve makes a move that convinces david robin they will tighten -- forget taper, titan.

Step two.

Until then stocks go higher?

I think they do.

If you think of march of 2013, valuations were attractive.

Earnings were reasonable.

When you look at stocks now, stocks are up 30% in the u.s., just about.

I think a lot of individuals have been sitting on the sidelines waiting for the next five percent correction.

It never occurred this year.

We saw little mini-dips.

This text has been automatically generated. It may not be 100% accurate.


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