By how much will the US Federal Reserve reduce its bond buying programme? Steen Jakobsen says the markets are losing patience with a lack of clear direction. It's clear to him that we will see a tapering of 15 and 20 billion dollars of asset purchases. He also points out that the Fed's budget deficit is now equal to the size of its bond-buying programme, it will soon need to reduce it. It's a simple question of mathematics. Specifically, he says investors are fed up with the interest rate market and everything that is interest rate related, which he says remains in a "vacuum where nothing works". Steen also warns that the significance of tapering "is over-estimated" and in fact he thinks it is more likely that, if anything, we will get more QE not less, but it will come in different forms.
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