Clearly the economy will have to pickup before the FOMC would start to taper QE3 purchases in December. (September tapering seems less likely now since the key data has been worse than forecast, but still not impossible).
Calculated Risk
Update: Four Charts to Track Timing for QE3 TaperingBill McBride
Noted Nomura bear Bob Janjuah believes he knows the reason why the Federal Reserve will begin pulling back its easing program, and it's not about unemployment, inflation or anything else directly related to the economy.
Instead, he believes the central bank is worried that it is creating an asset bubble that will only get worse if it keeps following the current path.
CNBC NetNet
Here's the Real Reason the Fed Will Taper QE: Pro
Jeff Cox | Senior Writer