The main focus of today’s Federal Reserve (Fed) meeting, considering that expectations are for unchanged interest rates, will be centered on the exit strategy, with President Jerome Powell anticipating the FOMC’s commitment to give “notice” to respect. to tapering. “We think it is too early to formally announce the decision to start tapering – says Gero Jung, Chief Economist of Mirabaud Asset Management – since a crucial precondition, that is further and substantial progress in economic data, is far away, as pointed out by the president himself. of the Fed during its latest report to Congress. In particular, progress in the labor market will be important. “
According to the expert from Mirabaud AM, a more formal decision on tapering will be very likely to arrive at the September meeting, as long as the employment figures are indeed substantial. The Jackson Hole symposium in late August will be another opportunity to announce further developments.