Fed wrong not to start QE tapering, says UBS economist

The US Federal Reserve made a mistake last month when it decided not to scale back its quantitative easing programme, and the result is likely to be increased market volatility, according to a senior economist.

The Fed announced on September 18 it would keep its asset purchases steady at $85 billion per month, surprising market participants who had interpreted comments from chairman Ben Bernanke in May and June to mean a tapering would begin before the end of the year.

The Federal Open Market