December FOMC review: pressing the gas on taper

Amundi
By January 19, 2022 14:40

December FOMC review: pressing the gas on taper

FOMC statement: The tone of the Federal Open Market Committee (FOMC) statement was hawkish, with a focus on higher inflation risks and more aggressive policy tightening. There were notable changes to the statement: the Fed retired the word ‘transitory’ to describe inflation; the Fed pointed to the recent inflation developments that directly led to a speeding up of tapering; the Fed announced that it would double the pace of tapering of its net asset purchases. The monthly reduction in such purchases will be $20bn for Treasury securities and $10bn for agency mortgage-backed securities (MBS) in January, up from the earlier monthly pace of $10bn for Treasury and $5bn for agency MBS. This pace is likely to end the Fed’s asset purchase programme by mid-March.

Amundi
By January 19, 2022 14:40

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