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The facade of the U.S. Federal Reserve building is reflected on wet marble during the early morning hours in Washington, July 31, 2013.
The facade of the U.S. Federal Reserve building is reflected on wet marble during the early morning hours in Washington, July 31, 2013.
(JONATHAN ERNST/REUTERS)

Expect more tapering as Fed looks beyond December payrolls

Is tapering here to stay this year? Despite a disappointing U.S. payrolls report in December, a number of observers believe that the Federal Reserve will continue to cut back on its monthly bond-buying program.

The Fed announced the start of tapering at the conclusion of its December policy meeting, after noting “further improvement” in the labour market and “the improvement in the outlook for labour market conditions.” The statement followed an upbeat payrolls report for November, originally showing job gains of 203,000 before being revised up to 241,000. At the same time, the unemployment rate fell to a five-year low of 7 per cent.