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Tapering by Fed Reserve to be held back - BlackRock CEO

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October 16
11:47 PM 2013

BlackRock CEO Laurence D. Fink commented that the US Federal Reserve may not be reducing its asset purchases untll late June of next year after the recent political impasse on the debt ceiling. In an interview with Maria Bartiromo at CNBC, Fink said, "It's going to force the Federal Reserve to push off the tapering at the very least to March but maybe as late as June."

Fink is the CEO of the world's biggest money manager with a portfolio of assets worth USD4.1 trillion, would be joining its peers in determining when the Fed would start undertaking the tapering of its purchases. The said policy was not undertaken in September, in light of the budget impasse. Other CEOs such as DoubleLine Capital LP Jeffrey Gundlach as well as Pacific Investment Management Co co-CIO Bill Gross had their own views on the matter.

The Federal Open Market Committee held back tapering the USD85 billion in bond purchases for September and indicated that the budget cuts and the increased costs of borrowing were problems for economic expansion. In a statement, policy makers were seeking more evidence of steady growth to overcome the 7.3% unemployment.

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