Fed Harker speaking
- GDP could grow by 7% in 2021 before moderating to 3% 2022
- forecasts inflation close to 3% for 2021
- maybe time to at least think about thinking about tapering the 120 billion in monthly bond and mortgage-backed security purchases
- we will remove accommodation carefully and methodically as the economy continues to strengthen
- Fed planning to keep the federal funds rate low for a long time
- vaccine hesitancy and novel Covid 19 variants presented a downside risk to the recovery
- fiscal monetary accommodation present and upside risk on inflation
- increased savings and reduce the debt loads set the table for a recovery that can be long and durable
- he expects job creation to pick up in the coming months and labor force return to pre-pandemic trends next summer
The Fed is shifting more toward thinking about QE reduction, but as far as changes in the Fed Funds rate, the Fed is a long way toward tightening.
