After these Evans comments, how can anyone believe there won’t be a taper

Comments from the Fed’s Evans:

• Evans says he will go to FOMC meeting with an open mind
• Evans says ultimate size of QE more important than taper timing
• Evans ‘can be persuaded’ there has been enough improvement in economy to begin curtailing bond buys
• Need growth strong enough to support further improvement in labor market, can’t get by with sub-2% growth
• Still a little nervous about low US inflation

Ok. There are still some people out there who don’t think a taper is coming. They’re wrong. Evans is the dovemaster and he’s basically saying that he’s ready to taper here.His dovish apprentice Kocherlakota said the same thing yesterday.

The debate is now down to how much. PIMCO’s Bill Gross was saying $10B after the NFP data. That seems low and he’s probably trying to unload his hefty stash of bonds. A better bet is $15B. I expect a firm consensus will build around that number with $10B in Treasuries or all of it in Treasuries.