Fed Dissent and Bond Volatility Are in Powell’s Taper Future
- Powell squelches talk of asset purchase shift any time soon
- Debate may resurface if jobs come back as fast as some expect
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Jerome Powell doesn’t want to talk about scaling back massive Federal Reserve asset purchases -- at least not yet -- but it’s only a question of time before the discussion resumes and that might not be a bad thing.
The Fed chair told reporters on Jan. 27 that “the whole focus on exit is premature” -- a clear call to his colleagues to focus on the economic damage in front of them rather than the forecast for a recovery.