We continue to expect the Fed to trim QE by
$10 billion per month this year and to remain
on pace to exit QE by the end of 2014.
Our view remains that the current center of
gravity at the FOMC will likely err on the side
of keeping rates lower for longer.
Markets should expect that the Fed will be
content with keeping its fed funds rate target
near zero until key labor market indicators
make significant progress toward “normal.”