The Fed is in early stages of a campaign to prepare markets for tapering its asset purchases

cnbc2021-06-08

The Federal Reserve is in the early stages of a campaign to ready markets for reducing its $120 billion in monthly asset purchases to stimulate the economy.Comments by Fed officials in the past ...

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Comments

CK11
2021-06-08
CK11
Don't be so serious..
- KF73:
  Worrying
- CK11:
  [笑哭]
- KF73:
  Haha
KF73
2021-06-08
KF73
When will tapering happen?
- 埃及妖后:
  The reverse repo Rate hit lowest & signal Market is full Of liquidity, tapering Risk ahead. Fed maybe will start talk about it & officially annoUnce tapeRing in sep fomc meeting and start in Q4 2021.
- CK11:
  Soon
- KF73:
  [捂脸]
Nat24asha
2021-06-08
Nat24asha
Pls like and comment
生肉麵加豬油渣
2021-06-08
生肉麵加豬油渣
It will come eventually just make it a soft landing pls...
ArkaneX
2021-06-08
ArkaneX
No
SandDust
2021-06-08
SandDust
The end of easy money

Leave a comment

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That announcement would then put the beginning of the asset reduction further out, perhaps by year-end or early next year. Since the Fed will taper its purchases, that is, reduce the amount it buys by some amount each month, that timeline would still see the Fed purchasing billions of dollars of assets well into 2022, though at an increasingly slower pace.All of that is contingent on how the economy rebounds from the pandemic. The recent pace of new job growth, averaging 541,000 payrolls over the past three months, and the recent decline in the unemployment rate look to be more or less in line with Fed expectations. Most Fed officials continue to believe that the recent spurt of inflation will prove temporary, so even big monthly gains are unlikely to speed up the plan, at least for a time.Avoiding a tantrumWhile the decision to taper is based on economic data, it eventually will be converted by Fed officials to calendar dates, though, as the Fed has done in the past, still linked to the data.Behind the glacial pace of reducing asset purchases is a deliberate attempt to avoid another so-called taper tantrum, the sharp spike in bond yields in 2013 that came after Fed Chairman Ben Bernanke hinted asset purchases could wind down.One view inside the Fed is that the taper tantrum occurred because it failed to adequately separate in the market’s mind the timelines for hiking interest rates and for reducing asset purchases. This time, the Fed is creating a long runway for tapering, making clear that rate increases only come after this process. It also has set a higher standard of economic improvement required for rate increases than it has for asset purchase reductions.Quarles late last month made that separation clear, saying: “It will become important for the FOMC to begin discussing our plans to adjust the pace of asset purchases at upcoming meetings.” But, he added,  “in contrast, the time for discussing a change in the federal funds rate remains far in the future.”At the moment, fixed income markets appear to be giving the Fed leeway to follow a gradual timeline. The 10-year note yield has been anchored around 1.60 percent for nearly four months, and the 2-year note rate has hovered around 15 basis points (0.15%). Fed Funds futures do not fully price in a 25-basis point rate hike from the Fed until early 2023.Fed officials expected volatility around any announcement that it will reduce asset purchases. And it’s clear yields could rise as a result. It’s possible markets may become more aggressive in pricing in rate hikes. The measure of success for the Fed’s current efforts will come if policymakers can move toward reducing asset purchases but see only modest changes in expectations for rate increases.The key risk now is that the Fed, in trying to avoid a taper tantrum, maintains easy monetary policy too long, allowing inflation to become a permanent, rather than temporary, problem.","kind":"news","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[{"id":117365906,"gmtCreate":1623117670005,"gmtModify":1704196428483,"author":{"id":"3581899057268262","authorId":"3581899057268262","name":"CK11","avatar":"https://static.tigerbbs.com/0923eb4b52245eb1bf4d6c510566f9f5","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"3581899057268262","authorIdStr":"3581899057268262"},"htmlText":"Don't be so serious..&nbsp;","listText":"Don't be so serious..&nbsp;","text":"Don't be so serious..","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":3,"repostSize":0,"link":"https://ttm.financial/post/117365906","repostId":1113815269,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":4677651,"gmtCreate":1623378385303,"gmtModify":1663228420166,"authorId":3579568649549102,"author":{"id":3579568649549102,"idStr":"3579568649549102","authorId":3579568649549102,"name":"KF73","avatar":"https://static.tigerbbs.com/08cb18d8dbd8d12a776f947554bdb6e6","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":117365906,"type":1,"supId":0,"prevId":0,"content":"Worrying","text":"Worrying","html":"Worrying"},{"id":4626558,"gmtCreate":1623117775607,"gmtModify":1663228169447,"authorId":3581899057268262,"author":{"id":3581899057268262,"idStr":"3581899057268262","authorId":3581899057268262,"name":"CK11","avatar":"https://static.tigerbbs.com/0923eb4b52245eb1bf4d6c510566f9f5","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":117365906,"type":1,"supId":4626548,"prevId":0,"content":"[笑哭]","text":"[笑哭]","html":"[笑哭]"},{"id":4626548,"gmtCreate":1623117752130,"gmtModify":1663228168648,"authorId":3579568649549102,"author":{"id":3579568649549102,"idStr":"3579568649549102","authorId":3579568649549102,"name":"KF73","avatar":"https://static.tigerbbs.com/08cb18d8dbd8d12a776f947554bdb6e6","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":117365906,"type":1,"supId":0,"prevId":0,"content":"<u>Haha</u>","text":"<u>Haha</u>","html":"<u>Haha</u>"}],"langContent":"EN"},{"id":117369945,"gmtCreate":1623117461687,"gmtModify":1704196420295,"author":{"id":"3579568649549102","authorId":"3579568649549102","name":"KF73","avatar":"https://static.tigerbbs.com/08cb18d8dbd8d12a776f947554bdb6e6","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"3579568649549102","authorIdStr":"3579568649549102"},"htmlText":"When will tapering happen?&nbsp;","listText":"When will tapering happen?&nbsp;","text":"When will tapering happen?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":3,"repostSize":0,"link":"https://ttm.financial/post/117369945","repostId":1113815269,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":4637059,"gmtCreate":1623170350514,"gmtModify":1663228220427,"authorId":3577345324058629,"author":{"id":3577345324058629,"idStr":"3577345324058629","authorId":3577345324058629,"name":"埃及妖后","avatar":"https://static.tigerbbs.com/6cdcb0ed51686b3b151c75086b3f68a4","vip":1,"crmLevel":1,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":117369945,"type":1,"supId":0,"prevId":0,"content":"The reverse repo Rate hit lowest &amp; signal Market is full Of liquidity, tapering Risk ahead. Fed maybe will start talk about it &amp; officially annoUnce tapeRing in sep fomc meeting and start in Q4 2021.","text":"The reverse repo Rate hit lowest &amp; signal Market is full Of liquidity, tapering Risk ahead. Fed maybe will start talk about it &amp; officially annoUnce tapeRing in sep fomc meeting and start in Q4 2021.","html":"The reverse repo Rate hit lowest &amp; signal Market is full Of liquidity, tapering Risk ahead. Fed maybe will start talk about it &amp; officially annoUnce tapeRing in sep fomc meeting and start in Q4 2021."},{"id":4626472,"gmtCreate":1623117597718,"gmtModify":1663228169939,"authorId":3581899057268262,"author":{"id":3581899057268262,"idStr":"3581899057268262","authorId":3581899057268262,"name":"CK11","avatar":"https://static.tigerbbs.com/0923eb4b52245eb1bf4d6c510566f9f5","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":117369945,"type":1,"supId":0,"prevId":0,"content":"<u>Soon</u>","text":"<u>Soon</u>","html":"<u>Soon</u>"},{"id":4626533,"gmtCreate":1623117724499,"gmtModify":1635332732257,"authorId":3579568649549102,"author":{"id":3579568649549102,"idStr":"3579568649549102","authorId":3579568649549102,"name":"KF73","avatar":"https://static.tigerbbs.com/08cb18d8dbd8d12a776f947554bdb6e6","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":117369945,"type":1,"supId":4626472,"prevId":0,"content":"[捂脸]","text":"[捂脸]","html":"[捂脸]"}],"langContent":"EN"},{"id":117940491,"gmtCreate":1623114790913,"gmtModify":1704196321675,"author":{"id":"3585730906136011","authorId":"3585730906136011","name":"Nat24asha","avatar":"https://static.tigerbbs.com/2b79fd490cac95f609d964146d116847","vip":1,"crmLevel":1,"crmLevelSwitch":0,"idStr":"3585730906136011","authorIdStr":"3585730906136011"},"htmlText":"Pls like and comment&nbsp;","listText":"Pls like and comment&nbsp;","text":"Pls like and comment","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/117940491","repostId":1113815269,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":117984807,"gmtCreate":1623113657009,"gmtModify":1704196274566,"author":{"id":"3559357742503712","authorId":"3559357742503712","name":"生肉麵加豬油渣","avatar":"https://static.tigerbbs.com/797772e5857b1091ed85d4b17fe6201b","vip":1,"crmLevel":6,"crmLevelSwitch":1,"idStr":"3559357742503712","authorIdStr":"3559357742503712"},"htmlText":"It will come eventually just make it a soft landing pls...&nbsp;","listText":"It will come eventually just make it a soft landing pls...&nbsp;","text":"It will come eventually just make it a soft landing pls...","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/117984807","repostId":1113815269,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":117905627,"gmtCreate":1623112289569,"gmtModify":1704196219395,"author":{"id":"3573820729106564","authorId":"3573820729106564","name":"ArkaneX","avatar":"https://static.tigerbbs.com/3e960bba343800acd12763380b87cec5","vip":1,"crmLevel":5,"crmLevelSwitch":1,"idStr":"3573820729106564","authorIdStr":"3573820729106564"},"htmlText":"No","listText":"No","text":"No","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/117905627","repostId":1113815269,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":117903094,"gmtCreate":1623112081818,"gmtModify":1704196211784,"author":{"id":"3581331938298103","authorId":"3581331938298103","name":"SandDust","avatar":"https://static.tigerbbs.com/ea6083d742fc232449a625fb122842c8","vip":1,"crmLevel":6,"crmLevelSwitch":0,"idStr":"3581331938298103","authorIdStr":"3581331938298103"},"htmlText":"The end of easy money","listText":"The end of easy money","text":"The end of easy money","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/117903094","repostId":1113815269,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"}],"isCommentEnd":false,"newsSizeData":{"likeSize":104,"commentSize":18,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/1113815269"}