Please try another search
© 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.
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
I feel that this comment is:
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.