Fed Chairman Ben Bernanke will not taper the Fed's bond buying before his term ends in January, says the head of U.S. rates strategy at Societe Generale. In fact, Mary Beth Fisher says, the Fed is more likely to increase its quantitative easing program than to decrease it.
And it could all come down to internal politics, Fisher said Thursday on CNBC's "Futures Now."
"I think Bernanke was a little bit more moderate than [Janet] Yellen and [William] Dudley and [Charles] Evans and clearly [James] Bullard in this situation, with inflation very low," Fisher said, referring to other members of the Federal Open Market Committee. Fisher finds it unlikely that Bernanke would "start tapering when he knows that that core of the committee, whose new leader was about to come out of it, were against the idea."
In fact, the strategist suggests that Fed Vice Chair Yellen's then-impending nomination for Fed chair could have been behind the Fed's decision not taper in September, which took markets by surprise.