The US Federal Reserve is about to rein in its money-printing – what does that mean for markets?

MoneyWeek/John Stepek

Repost from 9-28-2021

image of black hawk in profile“What’s also interesting is that in his press conference, Powell didn’t try to talk this back. In fact, he was very clear that – for example – it’s not going to take an absolute stunner of an employment report to make him think the time is ready to taper. He’s basically ready to do it.”

USAGOLD note: Stepek attempts to put the Fed’s hawkish turn into perspective. Or was it hawkish? ……… It might be worthwhile to keep in mind that tapering is not a Congressional act, nor is it a presidential order. It is a policy decision made by a governing board that can be halted or reversed at its discretion. We should keep in mind too that the last time the Fed attempted to cut back its heavy stimulus operations, all hell broke loose in the bond market and the Fed was forced to beat a hasty retreat. Policy today – hawkish or dovish – need not be policy six months from now.

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