The Federal Reserve has consistently said it would taper its acquisitions of mortgage-backed securities and Treasurys when unemployment reaches a certain level and economic data makes a viable case for doing so.
But Business Insider says Wall Street expects tapering to begin this week, and here are the real reasons for the Fed moving forward with it:
"In reality, the Fed may have several reasons to begin scaling back QE that have little or nothing to do with improvements in the labor market, despite what the central bank says."
Business Insider goes on to say, the Fed is tapering because of frothy markets, concerns over asset bubbles and Chairman Ben Bernanke's desire to create a legacy in which he gave the Fed a pathway out of QE before stepping down.
