It’s all about the taper this week. With stocks higher and now gold joining in the fun, the market is saying that a taper is less likely. Prices are up $4 to $1242 after falling as low as $1220 on Friday.
There is an infinite amount of chatter on what the Fed will do Wednesday. CitiFX breaks down how it sees economists:
- 35% expect a Dec taper with some dovish comments to soften the blow, like a commitment to low rates for longer
- 25% expect no taper but a solid commitment to one in January in the statement
- 20% say no taper with Fed saying they need to see a longer period of improvement in labor and the economy
- 15% no taper and with non-committal but more hawkish language
- 5% looking for a taper with no additional dovish language
