According to analysts at Citigroup, the US Federal Reserve (Fed) is likely to announce an acceleration in the reduction of its bond-buying programme from January when they meet next week to decide on the policy stance.
Key quotes
“There are broad expectations that the December 15 FOMC meeting will see an acceleration of tapering from January, which would see purchases end as soon as March. The timeline is consistent with pricing in US swap markets in terms of rate hikes that could follow.”
“The market reaction depends on the context – the Fed won't be dovish but we think much of their hawkishness is now priced in.”