Fed’s Tapering Decision Bears Out RGE’s Out-of-Consensus Call

NEW YORK—18 September 2013—Roubini Global Economics (RGE), an independent, global macroeconomics and strategy research firm, highlights its out-of-consensus call that the U.S. Federal Reserve would not “taper” the pace of quantitative easing at its September policy meeting, an assessment confirmed by the Federal Open Market Committee (FOMC) in a statement today.

RGE first expressed this view at the beginning of 2013, and the following key points from the FOMC’s press release have now borne out our analysis:

  • “The tightening of financial conditions observed in recent months, if sustained, could slow the pace of improvement in the economy and labor market.”
  • “The Committee decided to await more evidence that progress will be sustained before adjusting the pace  of its purchases. Accordingly, the Committee decided to continue purchasing additional agency mortgage-backed securities at a pace of $40 billion per month and longer-term Treasury securities at a pace of $45 billion per month.”

“RGE made this call early in the year and has consistently updated and reiterated that same position to our clients. We are proud that this argument has helped drive their performance,” said Scott Hall, Managing Director of Sales and Client Services.

RGE clients can view the original report here.