Fed to keep the steady hand in December – UOB

Lee Sue Ann, Economist at UOB Group, suggests the Federal Reserve would refrain from moving on rates at this month’s event.

Key Quotes

“The November FOMC minutes showed an increasing number of Fed officials willing to accelerate the asset purchase program (QE) tapering and consider earlier rates lift-off, if high inflation persists.”

“We now expect the Fed to announce at this coming meeting, a faster pace of QE reduction for 1Q 2022 and the tapering completion timeline will likely be brought forward to April 2022.”