Taper. Taper. Taper. Taper.
It’s the Wall Street buzzword for the gradual reduction of the Federal Reserve’s quantitative easing (QE) plan: the monthly purchases of $40 billion worth of mortgage-backed securities and $45 billion worth of Treasury securities. QE is intended to keep liquidity high and interest rates low in the credit markets.
The prospect of a taper is arguably causing interest rates to rise.
However, no one knows for sure when the taper will begin.
But they all have guesses.
Laszlo Birinyi compiled Wall Street’s predictions. Here they are:
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