FOMC monthly taper pace $30 billion vs $15 billion prior

The taper was expected to be sped up to $30B per month.

  • Prior taper pace was $10B Treasuries and $5B MBS
  • Change to the taper is ” In light of inflation developments and the further improvement in the labor market”
  • Fed funds rate held at 0.00-0.25%, as expected
  • Says similar pace of taper expected in the coming months
  • Prepared to adjust the pace of purchases if warranted by changes in the economic situation
  • Expects it will be appropriate to keep rates at current level until labor market conditiosn meet levels consistent with maximum employment
  • Dot plot shows three hikes in 2022 vs two hikes expected
  • Dot plot sees three more hikes in 2023
  • Supply and demand imbalances due to pandemic and reopening continued to contribute to elevated inflation

The Fed was expected to double the pace of the taper to $20 billion in Treasuries and $10 billion in MBS in response to higher inflation and that’s exactly what happened. The moderate surprise is in the dot plot where most saw two hikes being priced in and now it shows three. That’s in-line with markets anyway.

A 74% chance of an April hike is now priced in, rising to 100% in May.

 Head of Trading Dimitar Kalapov


Leave a Reply

Login to comment

* Rough, sarcastic and ironic language is not allowed. For such Admins Delete without notice.

Varchev Absolute Trader

борсова платформа

  • Търгувай над 3000 финансови инструмента: Crypto, Форекс, Акции, Индекси, Суровини, ETF-и
  • Използвай платформа с директно изпращане ордерите на борсите
  • Best Trading Platform - "Online Personal Wealth Awards" EU награждава Varchev Absolute Trader
  • Cloud base платформа - твоят трейдинг сетъп на всяко устройство
  • Traders Talk - чуй какво движи пазарите в реално време
  • Market Sentiment - търгувай с настроенията на инвестиционите банки
  • Top movers - най-горещите трейдове във всеки един момент
  • Stocks scanner - филтрирай най-подходящите за твоя трейдинг стил пазарни инструменти
  • Heat map - Търгувай в посоката на големите играчи

Read more:
If you think, we can improve that section,
please comment. Your oppinion is imortant for us.
WARNING: Any news, opinions, research, data or other information contained within this website is provided as general market commentary and does not constitute investment or trading advice. Varchev Finance Ltd. expressly disclaims any liability for any lost principal or profits which may arise directly or indirectly from the use of or reliance on such information. Varchev Finance Ltd. may provide information, quotes, references and links to or from other sites and blogs and other sources of economic and market information as an educational service to its clients and prospects and does not endorse the opinions or recommendations of the sites, blogs or other sources of information.
Varchev Finance
chat with dealer