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MNI Fed Preview - Jul 2021: A Little Closer To Tapering

FED

MNI has just published our Markets preview for the upcoming FOMC meeting here.

  • The FOMC will use the July meeting to debate its strategy to taper asset purchases (including timing, pace, and composition). The December FOMC looks like the most likely meeting for a formal announcement.
  • The risks to the July Statement lean hawkish, but the mood could swiftly change with Powell delivering a relatively dovish press conference.
  • Moves in yields since the June FOMC suggest increasing market concerns over the growth outlook, but it's unlikely this will persuade the Fed to change course at this stage.

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