Powell Weighs Earlier End to Bond Tapering Amid Hot Inflation
Comment of the Day

November 30 2021

Commentary by Eoin Treacy

Powell Weighs Earlier End to Bond Tapering Amid Hot Inflation

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

Shortly before the comment on asset purchases, Powell said it’s time to stop using the word “transitory” to describe inflation. 

“We tend to use it to mean that it won’t leave a permanent mark in the form of higher inflation,” Powell said. “I think it’s a good time to retire that word and try to explain more clearly what we mean.”

Eoin Treacy's view

Raising the prospect of a quicker tapering pace, after the biggest downward dynamic in stock markets in months, reveals a degree of insensitivity at the Fed. Stock market investors don’t take kindly to anything that restricts the liquidity on which valuations rely.

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