- When Fed will trim back purchases is necessarily uncertain and depends on evolution of economy
- Fed committed to communicating as clearly as possible policy aims and intentions
- Tightening will likely eventually occur in the context of more firmly established recovery
- Tapering and Fed tightening need not disrupt emerging market economies
- Policy likely contributed to asset price pressures and capital flows in EM’s
- Domestic developments (in EM’s) were possibly bigger factors in these flows and price pressures
- Fed does not see widespread signs of financial instability in EM’s
Jerome Powell speaking in San Francisco and an hour earlier that advertised it seems.
Emerging markets have settled down after what was a wild month back in August/September as money flowed out of EM’s like a broken damn on the back of the September taper expectations.
