Heads up

Fed's Daly and Mester are both expected to speak at the top of the hour.

Mester on August 30 said:

  • Repeats that US economy is 'basically there' in terms of substantial further progress needed to taper
  • She is focused on whether prices increases are being embedded as higher inflation expectations
  • She expects some of the high inflation readings seen this year to temper next year as supply chain challenges are resolved but some may last longer
  • There are upside risks to inflation and the Fed has to be attuned to that
  • Inflation criteria for rate hikes has not yet been met

On August 27 she said:

  • Repeats that the Fed has basically met the criteria for substantial further progress
  • Her own view is that the Fed should use the Sept meeting to lay out thinking about the timing and pace of the taper
  • Says she is looking to end the taper by the middle of next year
  • Changes to interest rates are longer down the road

Back on August 12, Daly said:

  • Optimistic about the fall and ongoing developments
  • Appropriate to start discussing dialing back the level of accommodation
  • The starting point for that is QE purchases
  • Tapering could start as soon as this year
  • Jobs progress is moving towards Fed's full employment goal