Tags: Fahmy | Fed | taper | rates

Zor Capital's Fahmy: 'No Fed Taper' in 2013

By    |   Tuesday, 27 August 2013 11:38 AM EDT

Federal Reserve Chairman Ben Bernanke may want to start tapering Treasury bond purchases soon, but he will not do it in 2013 after all because he wants to go out a winner when his term expires in January, predicts Joe Fahmy, managing director of Zor Capital.

Recent surveys of economists and experts have leaned toward the expectation the Fed may begin to trim its $85 billion bond purchases, designed to prop up the economy, as early as September.

"I don't think he's going to come this far, and pull the plug and cause a mess for the next Fed chairman," Fahmy told Yahoo. "He may still leave a mess but, I say, he's at least going to go out on a high note."

Editor’s Note:
Will This Video Get Obama Fired? See the Evidence.

The reason for Fahmy's conviction? Some government economic data does not yet support pulling back on Fed stimulus. The jobless rate, for instance, still does not meet Fed goals, even though some other recent economic reports have been more positive.

Fahmy envisions a positive response from stock investors who will applaud continuation of the Fed's policy of artificially low interest rates.

"So I say no taper, and I think the market goes to new highs by the end of the year," he told Yahoo.

Stock market volatility is being fed both by concerns about the possibility of Western intervention in Syria and the uncertainty about the Fed tapering timetable.. CNBC reported

Nick Lewis, head of risk at London Capital Group, told the network that low trading volumes were feeding the instability on Tuesday.

"Any move is exaggerated in these thin markets," he said. "Everyone's studying the economic data but it's a confusing picture, and hard to tell how 'good' for stocks the news really is."

Author and former Lehman Brothers trader Lawrence McDonald, who puts out the "Bear Traps" investor newsletter, suggested on Twitter that financial markets are conflicted.

"One is mispriced," he tweeted. "Gold miners [Market Vectors Gold Miners exchange-traded fund: GDX] are telling us the Fed will hold off on a QE [quanititative easing] taper. Long bonds [iShares Barclays 20+ Year Treasury Bond: TLT] are saying October taper.

Editor’s Note: Will This Video Get Obama Fired? See the Evidence.

© 2025 Newsmax Finance. All rights reserved.


FinanceNews
Federal Reserve Chairman Ben Bernanke may want to start tapering Treasury bond purchases soon, but he will not do it in 2013 after all because he wants to go out a winner when his term expires in January, predicts Joe Fahmy, managing director of Zor Capital.
Fahmy,Fed,taper,rates
375
2013-38-27
Tuesday, 27 August 2013 11:38 AM
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
TOP

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.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved
NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved