US NFP reduces the odds of Fed taper getting underway by Q42021 – Goldman Sachs

Anil Panchal FXStreet

Friday’s huge disappointment from US employment details for April, mainly from the headlines Nonfarm Payrolls (NFP), helps analysts at Goldman Sachs to expect no tapering from the US Federal Reserve (Fed) by the end of 2021.

Read: Breaking: US adds 266,000 jobs in April vs. 978,000 expected

The banker blames, “unusually generous unemployment benefits and lingering virus-related impediments to working,” as the key reasons behind the latest US jobs report debacle.

“Job gains and declines in the unemployment rate are likely to be less front-loaded than we had previously thought,” added Goldman.

Even so, analysts at the US-based investment bank said, “We continue to expect the FOMC to start tapering early next year.”

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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