Fed's Evans: Fed could taper in late-2021 or early 2022 if economy better

Author: Adam Button | Category: Central Banks

Evans puts a timeline on the taper

  • Would not be unreasonable if first rate hike was in mid-2024
  • Not going to forecast victory on inflation until we've actually seen it move up
  • Will have a better idea of recovery dynamics in the spring, or June
  • Any change to QE depends on how economy evolves
This is the first time I've seen a Fed official put a timeline on a taper. The bond market likes that QE but at the same time, it's tough to sell anything when the Fed is talking about keeping rates zeroed until mid-2024.

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