It looks like Atlanta Fed Bank President Raphael Bostic will fill up his swear jar.
“Transitory” is still in the Federal Reserve’s November policy statement.
The U.S. central bank completed its Federal Open Market Committee (FOMC) meeting. It left interest rates unchanged, adding that it is no rush to pull the trigger on rate hikes.
The big thing from the powwow of Fed heads was the institution beginning to taper its ultra-aggressive $120-billion-a-month bond purchases.
According to the announcement, the Fed will trim its purchases by $15 billion a month in November and December and then follow a similar path in the months ahead.
“Inflation is elevated, largely reflecting factors that are expected to be transitory. Supply and demand imbalances related to the pandemic and the reopening of the economy have contributed to sizable price increases in some sectors,” the statement said.
The financial markets barely reacted to the news as the leading benchmark indexes were unchanged from before the release.
Gold and silver were also down, but the metals did not experience a steep selloff. Bitcoin plunged nearly two percent. The benchmark 10-year yield rose 0.039 percent to 1.586 percent.
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