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Watch Art Cashin: Two key focal points for 2014

Tuesday, 31 Dec 2013 | 1:46 PM ET
Cashin says: Taxes and asset moves
Tuesday, 31 Dec 2013 | 11:40 AM ET
CNBC's Bob Pisani and Art Cashin, of UBS, discuss the final trading day of the year and the fact that even a 10-year yield over 3 percent isn't slowing down the market. Cashin says the end of the year could be causing investors to move investments around for tax purposes.

Art Cashin says he'll be watching carefully to see if the market forces interest rates higher at a faster rate than the Federal Reserve wants.

Cashin, UBS' director of floor operations at the NYSE, told CNBC's Bob Pisani around midday "that will be a very key focal point ... in the beginning of the coming year — to see if the bond market decides to tamper, if you would, with the tapering by accelerating or moving rates in a manner that the Fed is not ready for."

He added, "And then the other thing to look for is kind of the reverse of that ... All the money that the Fed has pumped in, does it finally begin to move into the economy? Do banks begin lending aggressively? And that might cause the Fed to taper more aggressively, fearing inflation."

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