Despite the fact that we saw some economic data which came in better than expected I still think that overall the economic landscape is rather mixed in the US and given the Yellen take over in a few weeks I doubt we will see any significant tapering, ever!
Let’s face it, if it will be reduced by $5 billion per month do you really change your point of view on the US economy?
I do not think that the US Fed may cancel QE. I would not be surprised if we still see an economic stimulus in the US in 2020 and beyond.
Japan has still not managed to exit their and while we are sure to see tapering in 2014, I would not bet on it to be a reduction of stimulus. I think we will see plenty of tapering going forward, but that we will always have some sort of stimulus in place.