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Fed to kick off faster tapering plan from January - Goldman Sachs

EconomyNov 25, 2021 05:50AM ET
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© Reuters. FILE PHOTO: Federal Reserve Chair Jerome Powell listens as U.S. President Joe Biden nominates him for a second four-year term in the Eisenhower Executive Office Building’s South Court Auditorium at the White House in Washington, U.S., November 22, 2021.

LONDON (Reuters) - The U.S. Federal Reserve will likely double the pace of tapering its monthly bond purchases from January to $30 billion, and wind down its pandemic-era bond buying scheme by mid-March, Goldman Sachs (NYSE:GS) strategists said in a daily note on Thursday.

"The increased openness to accelerating the taper pace likely reflects both somewhat higher-than-expected inflation over the last two months and greater comfort among Fed officials that a faster pace would not shock financial markets," analysts led by Jan Hatzius said in a client note.

Despite the accelerated tapering calendar, Goldman expects the Fed to start raising interest rates only from June for a total of three times in 2022. The U.S. investment bank is one of the several banks which have recently raised their interest rate hike expectations for 2022 to three from two.

Minutes of the central bank's Nov. 2-3 policy meeting showed that various policymakers said they would be open to speeding up the taper of their bond-buying programme if high inflation held and would move faster to raise rates.

Fed to kick off faster tapering plan from January - Goldman Sachs
 

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Comments (9)
Iwan kadarusman
Iwan kadarusman 22 hours ago
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tapering idea just the instrument to confuse the market. again and again
Al Ose
Al Ose Nov 25, 2021 6:55PM ET
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Why do they think Powell will change? He wont. Steady as she goes.
Louis Lipps
Louis Lipps Nov 25, 2021 12:08PM ET
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Only three rate hikes in an election year.  I'm taking the way under.
IceIce Baby
IceIceBaby Nov 25, 2021 9:29AM ET
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Or maybe they start right next week? Anybody can assume.
perplexed76 .
perplexed76 . Nov 25, 2021 9:29AM ET
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insiders are not every one
Desmond Chng
Desmond Chng Nov 25, 2021 9:26AM ET
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here it says they are expecting Feds to taper faster and hike more times then previously expected, while recently they also forecast S&P to go to 5100 by end 2022! this is so confusing and contradicting!
Strat Afro
Strat Afro Nov 25, 2021 8:16AM ET
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Foreigners are shedding. They smell the stink!
Strat Afro
Strat Afro Nov 25, 2021 8:15AM ET
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BIDEN the worst President as good as Carter. 🚬
New Jazenevd
New Jazenevd Nov 25, 2021 7:45AM ET
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Who is going to buy these”bonds”, if Fed stops doing this?
Philippe jallet
Philippe jallet Nov 25, 2021 7:45AM ET
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There will be bids, but much lower
Costinho Mokoena
Costinho Mokoena Nov 25, 2021 6:22AM ET
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Confusing headlinesNo clear indication of what i should know
Edward Chong
Edward Chong Nov 25, 2021 6:22AM ET
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cos goldman works for the fed. so they know haha.
Anjali Panchamukhifp
Anjali Panchamukhifp Nov 25, 2021 6:22AM ET
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Goldman Sachs is expecting FED to increase their tapering speed from January. May be they will double it from $15B to $30B every month and they will stop tapering by March and FED will start increasing their interests rate. Before Goldman Sachs were expecting FED to hike their interest rate twice in 2022 alone but now they are expecting 3 times in 2022 alone
Empire Destroyer
Empire Destroyer Nov 25, 2021 6:22AM ET
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Goldman Sachs want another dip to long cos we know Feds ain't doing this... the biggest manipulator doing what they do best, using their name/brand and media channels to influence the average ape
 
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