Fed's Harker: Fed is reaching consensus tapering should happen sometime this year
|The Fed is reaching a consensus that asset tapering should happen sometime this year, Philadelphia Federal Reserve Bank President Patrick Harker told Yahoo Finance on Friday, per Reuters.
Additional takeaways
"FOMC Chairman Powell's speech laid out where the center of the FOMC is on policy."
"Question is if monetary policy is the right tool to address current unemployment issues."
"Expecting to see a lot more job openings in August and more trouble filling those jobs."
"Looking forward more to jobs market in September and October."
"We should see the labor market continue to heal as more people feel comfortable getting back to work."
"As more people get vaccinated, the barriers to getting back to work will start to fall."
"Increasing vaccinations is the way to heal the labor market and the economy."
"Business contacts say supply chain issues may be longer-lasting than they thought."
"There is a risk higher inflation may be baked in longer than we think."
"Watching what sectors are seeing higher inflation and if there is spillover into other sectors not as affected by COVID."
"There is clearly the risk of inflation running higher than the Fed would like."
Market reaction
These comments don't seem to help the USD gather strength. As of writing, the US Dollar Index was down 0.32% on the day at 92.74.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.