September, 2013 Archives


And They Blinked …

by Riaan Nel in Global Economy

After a two-day meeting the FOMC decided not to start the much anticipated tapering of the Fed’s bond buying program.  This after the Fed has been signaling for weeks that they might start paring back the bond buying program in September.  I think they realized that the economic recovery is not as strong as it should be.  There is still considerable weakness in the economy, the labor market, and the global economy.  With another round of brinkmanship on the horizon between Republicans and President Obama regarding the debt ceiling and a continuing resolution to prevent a government shutdown, now is not the time to start the taper.  Maybe they didn’t blink – maybe they’re again having to contend with the reality that the partisanship in Washington could crater our tepid economic recovery.  The question now is who is going to blink when it comes to Obama and the Tea Party Republicans?  We need the political center to become stronger.