The Fed is forced to navigate through a high level of uncertainty with this week’s meeting.

The FOMC meets this week with the focus on any changes to the amount of monthly tapering of bond purchases the Fed has already begun executing. They began the end of this quantitative easing program in November and continued in December with a reduction of $15 billion each month of the $120 billion monthly purchase of treasuries and mortgage backed securities. At that pace, the bond purchase program would end in June of 2022. Chairman Powell testified before Congress the FOMC would be discussing increasing the tapering at this meeting.

 

PROBANK AUSTIN ADVISOR - DECEMBER 13, 2021