Four Charts to Track Timing for QE3 Tapering: Calculated Risk

From what is quite possibly the most informative blog site on many economic issues, Calculated Risk updates it's analysis on the four issues that it believes the Fed is looking at when making it's tapering decision.

As a quick update the 4 charts are:

1. Unemployment rate - declining but there is concern that the participation rate is dropping as well (although it improved in the November report).
2.  GDP - is set to meet or exceed expectations.
3. PCE prices - Are not increasing as expected.
4. PCE core inflation - Are not increasing as expected.

For more info click on the link.

There is an obvious concern that inflation is not anywhere near the 2% where the Fed wants it to be.