Rare Goldman view on US economy

THE US Federal Reserve is likely to begin tapering only in the second half of 2014 as the US economy remains sluggish, said Gary Cohn, Goldman Sachs president and chief operating officer.

Last week, following the release of what some in the market saw as a "hawkish" statement from the Fed, they are saying tapering or slowing down monetary stimulus could begin in the first quarter of 2014.

But Mr Cohn thinks the US economy remains in poor shape and the budget problems in Washington make it worse, so tapering is unlikely until next summer.