Morgan: Private Sector Risk Taking Should Help Fed Taper

Private Sector Risk Taking Will be key as the Fed starts to taper Last week the US Federal Reserve lifted short term rates by another quarter point, meeting analysts’ expectations. However, the Fed also surprised by announcing its plans for paring back the size of its balance sheet during the second half of this year; something analysts had not been expected for some time. Despite weak inflation figures, the Fed pressed ahead with its decision to increase rates, and policymakers remain set on plans to increase rates further in the coming years, including another quarter-point increase by the end of…