LONDON (Reuters) – The Federal Reserve (Fed) is expected to accelerate its reduction in asset purchases from January, which would fall by $ 30 billion per month, or double the current rate, and it could thus put an end to this process of “tapering” by mid-March, believe the strategists of Goldman Sachs.
“The increasing openness to an acceleration in the pace of curtailing purchases probably reflects both somewhat higher than expected inflation over the past two months and greater confidence among Fed officials that a faster pace will not shock the financial markets, ”they explain in a note.
Despite the prospect of an acceleration in the tapering schedule, Goldman Sachs expects the Fed to start raising its key rates only from next June. The American investment bank, like several competitors, is now counting on three rate hikes in 2022 and no longer on two.
The report of the Fed’s November 2-3 policy meeting released on Wednesday showed that several members of the institution were ready to accelerate the gradual cut in the bond purchase program if inflation remained high and act. faster to raise interest rates.
The Fed announced the outcome of this meeting the launch of “tapering” with the reduction from November of its asset purchases to the tune of $ 15 billion per month, an amount adjustable according to the evolution of the economic situation. .
(Saikat Chatterjee report, French version Laetitia Volga, said by Marc Angrand)
–
