FOMC: Focus remains on QE tapering – UOB

All the attention remains on the Fed and the probable announcement of the timing at when the Fed will start trimming its bond-buying programme, noted Lee Sue Ann, Economist at UOB Group.

Key Quotes

“Powell’s speech at Jackson Hole Symposium did not change our view and we still expect the Fed to further articulate a pledge of the taper timeline in the upcoming 21-22 September 2021 FOMC, which will likely last for nearly 1.5 years until May 2023.”

“Thereafter, we project two 25bps rate hikes for 2023, first to 0.25%-0.50% in June and to 0.50%-0.75% in December.”