Flash: BettIng for QE taper in Dec, risk for 2014 - HSBC

FXstreet.com (Barcelona) - As Kevin Logan, Chief US Economist at HSBC notes, the FOMC decided not to taper for four key reasons: mixed economic data, low inflation, tighter financial conditions, and near-term fiscal policy risks.

HSBC adds: "Based on our assessment of these factors over the remainder of this year, we expect the FOMC will decide to
moderate the pace of QE purchases in December." However, HSBC warns that "downside surprises on these factors have the
potential to postpone tapering into 2014."