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MNI Fed Review - September 2021: November It Is

MNI Fed Review - September 2021: November It Is

Executive Summary

  • As expected the FOMC held monetary policy steady Wednesday, September 22, while signaling tapering back asset purchases as early as this November as long as economic progress continues as expected.
  • Meanwhile, Chair Powell emphasized that there was a high threshold for raising the Funds rate, the dot plot leaned hawkish vs expectations, suggesting that half the FOMC sees liftoff within around 6 months of taper's end.

Apart from the September FOMC release's widely expected nod to a taper in the next meeting ("a moderation in the pace of asset purchases may soon be warranted", the major standout from the September FOMC release was the Fed funds rate dot plot. The dot plot medians were hawkish vs consensus going into the FOMC (which saw for example no hikes in 2022).

Contents

  • Page 2-3: FOMC Links, MNI Policy Review
  • Page 4-8: Sell-Side Analyst Views
  • Page 9-13: Statement / SEP / Dot Plot Comparison/ Powell Press Conference Summary / Transcript

Click to view the full review: MNI Fed Review Sep 2021

FedReviewSept2021.pdf


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