Home Capital Global review

For Fed taper, the end matters more

Liz Capo McCormick/Bloomberg
Liz Capo McCormick/Bloomberg8/26/2021 09:26 PM GMT+08  • 5 min read
For Fed taper, the end matters more
The Fed is currently buying US$80 billion ($108 billion) a month in Treasuries and US$40 billion of mortgage-backed securities.
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

These days, all the talk in financial markets is about when the Federal Reserve will start paring its debt purchases. What’s more important, for everything from stocks to bonds to currencies, is when they will end.

There have been few major moves ahead of the Kansas Fed’s virtual Jackson Hole symposium, where Chair Jerome Powell on Aug 27 may provide insight into how and when officials will start pulling back their bond market support. That will set the timetable for how soon the Fed will raise interest rates.

The stakes are high, with the gusher of cash awash in the financial system driving US stocks to record highs, and Treasury yields holding just above six-month lows. Pulling back too quickly may derail the economic recovery just as the surge in the delta variant is posing a new risk. Moving too slowly could fuel the inflation pressures unleashed by the reopening from the pandemic.

For more insights on corporate trends...
Sign In or Create an account to access our premium content.
Subscription Entitlements:
Less than $9 per month
Unlimited access to latest and premium articles
3 Simultaneous logins across all devices
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)
×
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.
Unlock unlimited access to premium articles with less than $9 per month. Subscribe Now