The Fed follows Biden on inflation with Chair Jay Powell articulating a faster taper this week. There has not been any new material inflation data since the Fed announced gradual taper plans, but the Biden administration has pivoted to an inflation focus. However, with rising inflation, high valuations and policy rates near zero, we are […]
interest rate hke
US Inflation Upswing Remains
US inflation upswing remains in place even as the Federal Reserve says it’s transitory and announced a only a gradual reduction of QE. This means the Fed will only slow the purchase of Treasury Securities, with the balance sheet continuing to grow until ~June 2022. Despite the Fed dismissing inflation risks, the key indicators followed […]
Fed start talking about thinking about tapering!
Dispatch #20 -2021 June 18th, 2021 This week, the Fed disclosed that their rate expectations have risen to 0.60% by the end of 2023 from near zero previously. This caught some markets by surprise and could well be a dress rehearsal of market action if the Fed brings forward rate hikes. In the short-term, bonds […]