America’s top central banker, Jerome Powell, has just addressed the Jackson Hole economic symposium….and declared that the Federal Reserve could begin to slow its bond-buying stimulus programme later this year.
In an eagerly awaited speech, Powell says that the Fed has achieved the ‘substantial further progress’ it was aiming for on inflation, and is making “clear progress toward maximum employment” too, given strong jobs gains in recent months.
But, Powell hasn’t given a clear pledge on exactly when the Federal Reserve might start winding back the $120bn/month programme, or how quickly it will act. He’s not lit the tapering touch paper today.
Pointing to the spread of the Delta variant, Powell says:
We have said that we would continue our asset purchases at the current pace until we see substantial further progress toward our maximum employment and price stability goals, measured since last…