Powell Says Fed on Track to Taper, Inflation Will Come Down
Comment of the Day

October 22 2021

Commentary by Eoin Treacy

Powell Says Fed on Track to Taper, Inflation Will Come Down

This article from Bloomberg may be of interest to subscribers. Here is a section:

“We are on track to begin a taper of our asset purchases that, if the economy evolves broadly as expected, will be completed by the middle of next year,” Powell said Friday during a panel discussion at a virtual event hosted by the South African Reserve Bank. “I do think it is time to taper and I don’t think it is time to raise rates.”

 

Eoin Treacy's view

The sudden success of former President Trump’s SPAC, up 1225% in 48 hours, is enough to convince anyone there is froth in the market and we are past time to begin tapering. That’s seems to be the conclusion of Chairman Powell since until today he has been circumspect about the Fed’s intentions. Nevertheless, he remains cautious about raising rates and not least because the 5-year continues to trend higher which takes a toll on government debt servicing costs.

Click HERE to subscribe to Fuller Treacy Money Back to top