You should taper in December and regain lost face.
A growing but vocal minority of economists
Even if the latest Reuters poll consensus still shows the Federal Reserve will wait until March before trimming its monthly bond purchases, the clamor to do that in December - or rather later today - is rising.
Thirteen of 69 economists in the latest Reuters poll, almost one-in-five, now expect the Fed to start rolling back on their bond purchases in December: a sharp increase from the three of 62 in the previous poll.
Those economists forecasting the Fed to act on Wednesday said it would be a chance for the U.S. Federal Reserve to redeem its credibility after wrong footing market predictions in September.
Christopher Low, chief economist at FTN Financial
"The Fed lost credibility when, in May and again in June, Bernanke prepared the markets for tapering in a few months only to pass on a taper in July and September,"
"Tapering in December is supported not only by those at the Fed, like Esther George and Richard Fisher, who see it as good policy but also by some, like James Bullard and Jeremy Stein who see it as a way of repairing some the Fed’s damaged reputation."
Ever since Chairman Ben Bernanke's taper speech in May, financial markets have tried to second guess the timing of when the Fed would start reducing their monthly $85 billion of bond purchases, widely known as QE3, based on data releases.