What Jerome Powell Didn’t Do: Lay the Groundwork
for Higher Rates
https://www.nytimes.com/2021/11/03/upshot/powell-fed-rates-inflation.html
https://www.nytimes.com/2021/11/03/upshot/powell-fed-rates-inflation.html
Fed to start easing support for the markets this
month, in first major pullback of pandemic era
https://www.washingtonpost.com/us-policy/2021/11/03/fed-powell-taper-november/
Related:
https://www.nytimes.com/2021/11/03/business/economy/fed-taper-bond-buying.html
https://www.washingtonpost.com/us-policy/2021/11/03/fed-powell-taper-november/
Related:
https://www.nytimes.com/2021/11/03/business/economy/fed-taper-bond-buying.html
Stocks Hit Record, Bond Curve Steepens After Fed:
Markets Wrap
https://www.bloomberg.com/news/articles/2021-11-02/asian-stocks-set-for-mixed-start-as-fed-awaited-markets-wrap
https://www.bloomberg.com/opinion/articles/2021-11-03/fed-decision-central-bank-sets-date-with-bond-vigilantes-in-8-months
HIGHLIGHTS FROM THE FOMC STATEMENT [NOV 3,
2021]:
https://www.federalreserve.gov/newsevents/pressreleases/monetary20211103a.htm
The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. With inflation having run persistently below this longer-run goal, the Committee will aim to achieve inflation moderately above 2 percent for some time so that inflation averages 2 percent over time and longer‑term inflation expectations remain well anchored at 2 percent. The Committee expects to maintain an accommodative stance of monetary policy until these outcomes are achieved. The Committee decided to keep the target range for the federal funds rate at 0 to 1/4 percent and expects it will be appropriate to maintain this target range until labor market conditions have reached levels consistent with the Committee's assessments of maximum employment and inflation has risen to 2 percent and is on track to moderately exceed 2 percent for some time. In light of the substantial further progress the economy has made toward the Committee's goals since last December, the Committee decided to begin reducing the monthly pace of its net asset purchases by $10 billion for Treasury securities and $5 billion for agency mortgage-backed securities. Beginning later this month, the Committee will increase its holdings of Treasury securities by at least $70 billion per month and of agency mortgage‑backed securities by at least $35 billion per month. Beginning in December, the Committee will increase its holdings of Treasury securities by at least $60 billion per month and of agency mortgage-backed securities by at least $30 billion per month. The Committee judges that similar reductions in the pace of net asset purchases will likely be appropriate each month, but it is prepared to adjust the pace of purchases if warranted by changes in the economic outlook. The Federal Reserve's ongoing purchases and holdings of securities will continue to foster smooth market functioning and accommodative financial conditions, thereby supporting the flow of credit to households and businesses.
https://www.bloomberg.com/news/articles/2021-11-02/asian-stocks-set-for-mixed-start-as-fed-awaited-markets-wrap
Inflation Debate Can Wait as Fed Tapers
https://www.wsj.com/articles/inflation-debate-can-wait-as-fed-tapers-11635970731
https://www.wsj.com/articles/inflation-debate-can-wait-as-fed-tapers-11635970731
https://www.bloomberg.com/opinion/articles/2021-11-03/fed-decision-central-bank-sets-date-with-bond-vigilantes-in-8-months
https://www.federalreserve.gov/newsevents/pressreleases/monetary20211103a.htm
The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. With inflation having run persistently below this longer-run goal, the Committee will aim to achieve inflation moderately above 2 percent for some time so that inflation averages 2 percent over time and longer‑term inflation expectations remain well anchored at 2 percent. The Committee expects to maintain an accommodative stance of monetary policy until these outcomes are achieved. The Committee decided to keep the target range for the federal funds rate at 0 to 1/4 percent and expects it will be appropriate to maintain this target range until labor market conditions have reached levels consistent with the Committee's assessments of maximum employment and inflation has risen to 2 percent and is on track to moderately exceed 2 percent for some time. In light of the substantial further progress the economy has made toward the Committee's goals since last December, the Committee decided to begin reducing the monthly pace of its net asset purchases by $10 billion for Treasury securities and $5 billion for agency mortgage-backed securities. Beginning later this month, the Committee will increase its holdings of Treasury securities by at least $70 billion per month and of agency mortgage‑backed securities by at least $35 billion per month. Beginning in December, the Committee will increase its holdings of Treasury securities by at least $60 billion per month and of agency mortgage-backed securities by at least $30 billion per month. The Committee judges that similar reductions in the pace of net asset purchases will likely be appropriate each month, but it is prepared to adjust the pace of purchases if warranted by changes in the economic outlook. The Federal Reserve's ongoing purchases and holdings of securities will continue to foster smooth market functioning and accommodative financial conditions, thereby supporting the flow of credit to households and businesses.