Taper Talk Has Arrived, Rates Remain Subdued

The continued prevalence of high inflation numbers has the Fed in a bit of an awkward position, and on the periphery of the FOMC rumblings have begun about tapering. It appears the long foretold ‘thinking about, thinking about’ tapering has finally begun. However, the core position of the Fed and actions so far remain in the accommodative stance and likely will for the immediate future. There is definitely a tidal shift in the discourse though and the Fed appears to know it.

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