Free Trial

Post-FOMC Analyst Views: Taper Timing Expectations Maintain Wide Range

FED

While the January FOMC went mostly in line with analysts' expectations, some (Goldman Sachs, Morgan Stanley, NatWest) viewed the message as leaning more dovish, while others (BMO, Nordea, Scotiabank) saw some hawkish signals, if only modest ones.

  • The meeting did not change any opinions on future Fed action. The broad sell-side consensus is that tapering will begin in 2022, with Fed funds rate hikes not before late 2023/early 2024 (though liftoff timing ranges from mid-2022, to 2025).
  • The following table lists projected timing for the Fed beginning tapering, from soonest (top) to latest (bottom). Tapering timing ranges from as early as June 2021 (Nordea) to as late as 2023 (BNP Paribas).


To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.