This preview in brief ahead on the Federal Open Market Committee meeting today, main points from Goldman Sachs:
- We expect the taper timeline to keep rate hikes off the table until roughly mid-2023
- Labour market slack remains too high for the Federal Open Market Committee to begin hinting at tapering
- Economic recovery has accelerated sharply since the FOMC last met in March
We expect the FOMC to start hinting at tapering in the second half of this year and to begin tapering in early 2022. Our working assumption is that the pace of tapering will be $15bn per meeting, in which case it would take eight meetings or one year to complete."
GS pic on the tapering time line ahead:
For more preview, this posted earlier: