A summary of Fed commentary so far on the week
Fed officials continue to make the case for tapering by year-end
- Fed's Bullard looks past NFP miss, reaffirms taper call
- Fed's Williams: It could be appropriate to start taper this year
- Fed's Williams continues to campaign to separate taper from liftoff date
- Fed's Kaplan makes the case for an October taper
- Fed's Kaplan says COVID-19 resurgence is having a negative impact on travel, hospitality, leisure
As mentioned at the start of the week, the US non-farm payrolls miss may put a dent on Fed taper expectations but it isn't going to derail plans by the central bank itself to pursue discussions later in the month and taper by year-end.
At the moment, inflation is presenting a problem to policymakers and they want flexibility in dealing with that. And tapering is but the first step to try and gain that flexibility.
Later today, we'll be getting more Fed speakers with Daly, Evans, Kaplan, Bowman, Williams, Kashkari, and Rosengren set to speak.