Will Fed Taper in 2013? Maybe: Pro

Friday, 7 Jun 2013 | 6:34 PM ET
Fed Tapering On Its Way?
Friday, 7 Jun 2013 | 5:00 PM ET
What might kill this market rally? Dissecting the day's major business news, with the "Fast Money" traders; and WSJ's Jon Hilsenrath, discusses how May's jobs data might impact Fed policy.

A modestly positive U.S. employment report means the Federal Reserve might not taper its bond-buying program – yet, Wall Street Journal Chief Economics Correspondent Jon Hilsenrath said Friday.

"I think that what you saw today with the unemployment report was a number that's kind of in line with what they're expecting to see – good growth, payroll growth, but not great, but actually holding up in the face of fiscal headwinds," he said.

On CNBC's "Fast Money," Hilsenrath noted that Federal Reserve Chairman Ben Bernanke had telegraphed a tapering of quantitative easing in the next few meetings, which could mean September.

While the Fed is expecting the economy to pick up in the second half of the year that would mean pulling back on its bond-buying program, Hilsenrath said its growth forecasts might be too rosy.

(Read More: Is Today's Jobs Number Too Good?)

"If you read analysts' report … they're expecting slower growth," he said.

"That's the next big issue for the Fed, I think – are their forecasts going to hold up? Because some people think that they're being too optimistic about the outlook," he added.

In response to a question about how Japan might factor into the Fed's thinking, Hilsenrath said it was a matter of relief.

(Read More: After Jobs Report, Pros Look to Japan)

"I think that they've got to be looking at what's going on in Japan and saying, 'Well, you know, things are actually pretty orderly in the U.S.,'" he said. "I think they would take some comfort that what's happening in Japan isn't playing out globally."

Trader disclosure: On June 7, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Tim Seymour is long AAPL; Tim Seymour is long BAC; Tim Seymour is long INTC; Tim Seymour is long MSFT; Tim Seymour is long YUM ; Steve Grasso is long AAPL; Steve Grasso is long ASTM; Steve Grasso is long BA; Steve Grasso is long BAC; Steve Grasso is long GDX; Steve Grasso is long GOOG; Steve Grasso is long LF; Steve Grasso is long LNG; Steve Grasso is long MHY; Steve Grasso is long MJNA; Steve Grasso is long PXD; Steve Grasso is long NVIV; Steve Grasso is long PFE; Steve Grasso is long S; Steve Grasso is funds long AAPL; Steve Grasso is funds long MSFT; Steve Grasso is funds long HPQ; Steve Grasso is funds long NEM; Steve Grasso is funds long ZNGA; Dan Nathan is short XLU June 38/36; Dan Nathan is long XLE June 80/77, put spread; Dan Nathan is long FB June/July 25 call spread; Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long MSFT; Guy Adami is long AGU; Guy Adami is long NUE; Guy Adami is long BTU; WIFE, LINDA SNOW, WORKS AT MERCK.


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