Goldman Sachs came out with the pre-Fed report suggesting no hints of tapering during early Wednesday. In doing so, the US bank said, “We expect the FOMC to start hinting at tapering in the second half of this year and to begin tapering in early 2022. Our working assumption is that the pace of tapering will be $15bn per meeting, in which case it would take eight meetings or one year to complete.”

Details of the piece also signal that the rate hikes are “off the table until roughly mid-2023.”

Goldman highlights labor market slack as the key catalyst to keep the Federal Open Market Committee (FOMC) away from the tapering.

It was also mentioned that the economic recovery has accelerated sharply since the FOMC last met in March.

Read: Federal Reserve Preview: Will Powell power up the dollar? Three things to watch out for

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