While the “tapering” is steeper than earlier cycle of 2014, Jerome Powell emphasized its need, given that inflation this time is much higher, job openings are better and “demand is very, very strong”.
PRO Only Highlights
– Quarterly performance largely backed by improved realisations
– Medium-term triggers China plus and protectionist measures for tyre industry
– Valuations not inexpensive; but improved medium-term outlook
Powell initiates tapering of bond purchase from November Delinks interest rate lift-off from tapering Lower labour participation may be structural Wage inflation may not yet be concerning EM assets to underperform on growth & financial conditions differentials Re-set portfolio for scrips having strong earnings visibility The US Fed has finally announced the long-awaited “tapering” of bond purchases. “Tapering” starts later this month, with asset purchases- currently at $ 120 billion per month- reduces by $ 15 billion per month. This means the Federal Reserve will purchase…
