Fed is reaching consensus tapering should happen sometime this year
The Fed is reaching a consensus that asset tapering should happen sometime this year, Philadelphia Federal Reserve Bank President Patrick Harker told Yahoo Finance on Friday, per Reuters.
Additional takeaways
“FOMC Chairman Powell’s speech laid out where the center of the FOMC is on policy.”
“Question is if monetary policy is the right tool to address current unemployment issues.”
“Expecting to see a lot more job openings in August and more trouble filling those jobs.”
“Looking forward more to jobs market in September and October.”
“We should see the labor market continue to heal as more people feel comfortable getting back to work.”
“As more people get vaccinated, the barriers to getting back to work will start to fall.”
“Increasing vaccinations is the way to heal the labor market and the economy.”
“Business contacts say supply chain issues may be longer-lasting than they thought.”
“There is a risk higher inflation may be baked in longer than we think.”
“Watching what sectors are seeing higher inflation and if there is spillover into other sectors not as affected by COVID.”
“There is clearly the risk of inflation running higher than the Fed would like.”
Market reaction
These comments don’t seem to help the USD gather strength. As of writing, the US Dollar Index was down 0.32% on the day at 92.74.
