More from BlackRock, expect the Fed should be able to begin to taper asset purchases sooner than many expect

I posted on the firm's view on equities earlier:

• BlackRock says overweight equities, see a better earnings outlook, moderate valuations

A little more, this time in response to the (US) CPI report overnight

• the report shows strengthening, but not excessive, inflation

On the Federal Reserve:

• Financial conditions should remain quite accommodative for a while, and in our view risks an overshoot
• We think that the Fed should be able to begin to taper asset purchases sooner than many expect, and perhaps by the end of the year, or early next year
• The firm says there may be a hint of this in Fed communications early as the June FOMC meeting

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Wow, a discussion of tapering as early as June sounds very soon. Markets are pricing in a rate hike much more quickly than the Fed is canvassing ... but an actual discussion of tapering as soon as June could well spook markets. Stay tuned.