Analyst Views: What did you make of the Federal Reserve’s decision not to taper its quantitative easing programme?

LIZ ANN SONDERS | CHARLES SCHWAB
What we now face is a lingering uncertainty regarding the timing of tapering; which means the sharp rally induced by the announcement could run into trouble. I remain very optimistic about the stock market; but the hope that this was going to be the lifting of one of many uncertainties hasn’t panned out.

STEEN JAKOBSEN | SAXO BANK
I don’t think the Fed’s decision not to taper is really a shock because if you look at the underlying trends, you’ll see that first the job growth is not real jobs, it’s based on the participation rate that is not actively engaging. Secondly, there is a very low inflation rate... The market’s expectations were too high.

CHRIS IGGO | AXA IM
Now investors have to see lower unemployment, strong output growth, a healthy housing market to even think about challenging the rates outlook. What does it take to get higher rates in the US now? When we know the answer to that question it might be too late. Higher inflation or another boom and bust.

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