The Investment Real Estate Research Blog

December 19, 2013

  • Reiterating the positive economic news of recent weeks, the Fed announced plans to taper its quantitative easing (QE) program in January. This will be the central bank’s first step toward withdrawing its unprecedented support for the U.S. economy. The token reduction in bond and securities purchases follows a series of positive reports suggesting the economy is better positioned to mount a self-sustaining recovery. Third quarter GDP growth significantly exceeded expectations, job gains have surprised to the upside, retail sales have been solid and the housing market appears to be on solid footing. In addition, an impending budget deal will offer fiscal stability for the coming two years, removing risks of another government shutdown and additional sequestration. More importantly, the budget deal will eliminate some of the brinkmanship that heightened uncertainty and stymied economic performance. While the taper will likely lead to modestly higher interest rates, the Fed’s…

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