Fed Accelerates Taper Today, the Federal Reserve Board announced doubling the pace of their asset tapering to $30 billion a month, which was slightly more hawkish than consensus expectations. Rather than end all asset purchasing today, Jerome Powell highlighted that a calculated, methodical approach to winding down asset purchasing is a more stable approach for markets. The current plan is for asset purchases to end by March 2021 with the market expecting a high probability of three interest rate hikes in 2022, up to 100 basis points.
bags are full; let’s go!