In the highly anticipated Jackson Hole speech, Fed chair Jerome Powell said “substantial further progress test has been “met for inflation”. And there has also been “clear progress toward maximum employment”.
At July’s FOMC meeting, he view was that if the economy “evolved broadly as anticipated”, it could be “appropriate to start” tapering this year. However, “the intervening month has brought more progress in the form of a strong employment report for July, but also the further spread of the Delta variant.”
He added that Fed will be “carefully assessing incoming data and the evolving risks”, without giving any hint of the timing and pace of tapering
