Finance

Fed could start to taper purchases between October and December

Atlanta Federal Reserve Bank President Raphael Bostic noted on Monday that he thinks the Fed could start to taper purchases between October and December but added that is open to moving it forward, as reported by Reuters.

Additional takeaways

“‘Substantial further progress’ goal on inflation has effectively been met.”

“Fed could achieve ‘substantial further progress’ on employment if there are is another month or two of strong jobs gains.”

“In favor of a balanced approach of tapering treasury purchases and mortgage-backed security purchases at the same rate.”

“Would be in favor of completing the taper in a shorter period than what was done in previous rounds.”

“Open to the idea that if the delta variant comes through in more difficult and challenging ways policy may need to be adjusted.”

“Do not expect delta variant to lead to widespread shutdowns seen last year, so could lead to slower momentum but not a contraction.”

Market reaction

The greenback continues to outperform its rivals following these remarks and the US Dollar Index was last seen gaining 0.17% on the day at 92.95.

View more information: https://www.fxstreet.com/news/feds-bostic-fed-could-start-to-taper-purchases-between-october-and-december-202108091628

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