Bank of Canada views Fed tapering as a positive
Symbolizes a strengthening economy
Bank of Canada Deputy Governor John Murray views the looming removal of the Federal Reserve's massive stimulus program as a positive since it symbolizes a strengthening economy that can drive without training wheels, Reuters reports. The article went on to explain this theory:
"The improving underlying strength of the U.S. economy should more than compensate for the drag from higher interest rates," he said in a speech to economists. "Stronger external demand, coupled with downward pressure on our currency and support for commodity prices from a global economic recovery, will provide the lift."
"Before getting too excited about the negative consequences of exiting, it is important to step back and consider why events might unfold in a manner that is more benign than some critics have feared," Murray declared.