We can find a wonderful selection of charts in Robin Harding’s article at Financial Times, which explain the reasons for gradually dropping the QE. I’ll include some of them:
1. In the chart below, we find the employment rise (red) and the voluntary job cessation, which are a clear evidence of the improvement in the expectations of finding a new job.
2. For their part, the ISM manufacturing and ISM services are both at very ample levels (far above 40).
3. Thirdly, there is the strength that housing and land markets (and their price) are gathering. In this case, levels are yet way below those before the economic crisis.
4. And finally, the following chart includes several consumer price indexes, which illustrate the awful hyperinflation caused by Mr. Bernanke (according to “austerity fanatics”).
With such low inflation rates, why shouldn’t we expect a restriction of the monetary facilities? Tea partisans’ pressure is savage. If a little hidden bubble goes unnoticed, it will damage Bernanke’s pedestal for history records. Before retirement, he (logically) wants to finish his job with all the honours. But, (also logically) he will do it with great caution, so as not to spoil the increasingly better perspectives.