The President of the Chicago Fed, told reporters he expects growth in the second half of the year to accelerate to a 2.5% annual growth rate, from a paltry 1% rate over the past three quarters, and reach over 3% growth rate in 2014.
Based on this forecast, the central bank is “quite likely” to slow down its $85 billion a-month asset purchase plan “starting later this year,” Evans said.
The Chicago Fed president said he could not predict exactly at which meeting the central bank would start to taper.
“I couldn’t tell you exactly which month that will be,” Evans said.
“We need stronger evidence of accelerating growth, a little more momentum,” he added. “We’re not far from that.”
Evan's comments are negative for MBS today.
At this point you should be LOCKING in your rate ASAP!
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