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December Tapering Odds by Donald Kohn

 (Image source: telegraph.co.uk)

According to Donald Kohn, the former Vice Chairman of the Board of Governors of the Federal Reserve, the odds of tapering in December are 60-40. Kohn cited the budget agreement reached in congress and the strong retail sales report released yesterday as potential reasons for monetary stimulus being scaled back at the FOMC meeting on December 18th.  On the other hand, Goldman Sachs Group Inc (NYSE:GS) still believes that tapering is most likely to occur in March of 2014 as low inflation growth continues to persist. The current consensus among economists favors a December tapering.