Powell considers ending tapering “a few months early” -with high inflation-Bloomberg

Federal Reserve Chairman Jerome Powell said the strong US economy and high inflation may justify ending the asset purchase program earlier than planned next year. However, he said that a new mutant of the new coronavirus, “Omicron,” would pose a new risk to the outlook.

“I think it’s appropriate to discuss the pros and cons of ending asset purchases a few months early at the next Federal Open Market Committee (FOMC) meeting two weeks later,” Powell said yesterday. “We will get more data in the last two weeks and get a better understanding of the new mutants,” he continued.

Powell responded to a question at a hearing at the Senate Bank Housing and City Commission. Based on plans announced in early November, US financial authorities currently expect to complete the asset purchase program in mid-2022. Officials may decide to accelerate tapering at the next FOMC on December 14th and 15th.

FRB Chair Powell speaks at Senate Bank Housing and City Commission hearing

Source: Bloomberg

Powell also pointed out that shortly before the statement about buying assets, it was time to stop using the word “transient” to describe inflation.

“We tend to use this phrase in the sense that it does not leave a lasting effect in the form of rising inflation,” he said. “Stop using this term and do more of what we mean.” I think it’s a good time to try to explain clearly. “

Original title:

Powell Weighs Faster Tapering of Bond Buys Amid High Inflation(抜粋)

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