Newsmax TV & Webwww.newsmax.comFREE - In Google Play
Newsmax TV & Webwww.newsmax.comFREE - On the App Store

Marathon's Richards Says Fed to Taper to $60 Billion This Month

Monday, 16 September 2013 03:22 PM EDT

Sept. 16 (Bloomberg) -- The Federal Reserve will at its next meeting reduce its unprecedented stimulus to as little as $60 billion each month, according to Bruce Richards, chief executive officer and co-founder of New York-based hedge-fund firm Marathon Asset Management LP.

The tapering will begin this month with the U.S. central bank reducing its bond purchases to the annual equivalent of about $700 billion, Richards said today at the 19th Annual Alpha Hedge West Conference in San Francisco.

“So the tapering isn’t much,” he said. “But there will be another tapering and another tapering and another tapering. And they’ll be done by next summer.”

Seventy-one percent of economists surveyed by Bloomberg News predict the Fed will confirm at a meeting in the next two days that it will reduce the $85 billion of monthly bond purchases it has been using to boost the economy. Once the Fed is done with the tapering it will be ready to raise interest rates, which won’t begin until March 2015 at the earliest, according to Richards.

“Models say between March and October of 2015, when unemployment goes to 6.5 percent,” he said of the timing for interest-rate increases. “It’s going to take a while.”

Janet Yellen will be a “shoo-in” for confirmation if she is nominated as the next chairman of the Federal Reserve, Richard said.

“She will be very dovish for an extended period of time and may taper slower” if she decides to move the benchmark for increasing interest rates to 6 percent joblessness from 6.5 percent, or switch to an inflation peg, he said.

--Editors: Josh Friedman, Christian Baumgaertel

To contact the reporter on this story: Nathaniel Baker in New York at [email protected]

To contact the editor responsible for this story: Christian Baumgaertel at [email protected]

© Copyright 2024 Bloomberg News. All rights reserved.

Monday, 16 September 2013 03:22 PM
Newsmax Media, Inc.

Sign up for Newsmax’s Daily Newsletter

Receive breaking news and original analysis - sent right to your inbox.

(Optional for Local News)
Privacy: We never share your email address.
Join the Newsmax Community
Read and Post Comments
Please review Community Guidelines before posting a comment.
Get Newsmax Text Alerts

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

© Newsmax Media, Inc.
All Rights Reserved
© Newsmax Media, Inc.
All Rights Reserved