A change in tone at the Fed on tapering

While the recent data have pushed the Fed's QE withdrawal timetable out, the latest Fed statements indicate a level of hawkishness on tapering QE that we haven't seen in the last few weeks. This jobs report is shaping up to be a key data point in Fed decision making.
Three Fed Governors spoke about monetary policy yesterday and they all were fairly hawkish about the timetable for tapering. Let me run down their comments and add a few of my own.
First there was the always hawkish Esther George, head of the KC Fed. She was quoted by the Wall Street Journal as saying that some markets are addicted to cheap money. The Wall Street Journal did not specify specific markets. I imeediately thought of high yield, leveraged loans and mortgage-backed securities (as you will see in the links post). B...

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