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Jakobsen: No taper 'doesn’t come as a shock'

Steen Jakobsen

While most analysts are close to flabbergasted by the Fed’s decision not to taper, Saxo Bank’s Chief Economist and CIO Steen Jakobsen, isn’t surprised. 

In fact, while markets were gearing up for a USD 10 billion reduction of the Fed's monthly asset-buying programme, Steen kept warning us that QE was there to stay for quite some time.

He explains there are three main reasons behind his argument; Firstly, he says US job creation is not real, secondly, that the country has a very low inflation rate, which means it's on excess capacity, and finally, that we have seen an increase in mortgage rates and rates in general.

All this means the Federal Reserve was miscommunicating what was really happening and that's why market expectations were too high.

He adds that as a result, we could see the other major central banks taking steps to counteract the Fed's movements, which means we will see increased volatility in all asset classes.

Jim Earls Jim Earls
Steen-too bad the media didn't hype your position before yesterday, then there would have been no intended 'shock value' to the decision stealing the Fed's thunder.
Lubomir Lubomir
Steen, I have been listening to your ideas for quite a time (despite I am just a small retail investor) and I appreciate your straight forward ones presented at FX Debate. What I especially like, you keep yourself quite a distanced from all this Hype and being very clear and consistent on the issues
Steen Jakobsen Steen Jakobsen
Lubomir - you are too kind but I appreciate you reaching out...

Jim - one can only do ones job - I think yesterday is good long-term. Fed show us and the Ivory Tower economists that they are zero idea how to move along from here ... we are down to the politicians engaging on coming up with real reform - unlikely absolutely, but maybe then w zero growth in US and Germany next year we can start a new


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