Fed's Bullard: Markets are well prepared for taper
|St. Louis Fed President James Bullard told the Washington Post on Wednesday that he doesn't think there is going to be a taper tantrum and argued that markets are well prepared for it, as reported by Reuters.
Additional takeaways
"My idea is to move earlier and faster on the taper so the Fed could be in a better position to combat strong inflation in 2022."
"The labor market is certainly improving and people will get matched up with jobs in the coming months."
"It's very clear things have progressed quite rapidly than what the Fed was expecting in December 2020."
"The Fed would be able to assess the situation in the first half of next year after taking asset purchases off the table."
"Moderately concerned about the housing market."
"We don't really need the asset purchases at this point, there is a lot of recovery going on."
Market reaction
These remarks failed to provide a boost to the greenback. As of writing, the US Dollar Index was down 0.22% on the day at 91.86.
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