10/22/2021, 5:13 PM (Source: TeleTrader)
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Powell: Tapering likely to end by mid-2022

United States Federal Reserve Chair Jerome Powell said on Friday that the Fed's asset purchases are likely to end by the middle of 2022 if the economy recovers "as broadly as expected."

Supply issues are still "weighing on" and holding back US economic activity, he said at the Virtual Bank for International Settlements-South African Reserve Bank Centenary Conference, adding that the GDP for this year will be "a bit lower than we thought," especially following the impact of the Delta coronavirus variant.

As for inflation, he estimated that high consumer prices will likely persist "well into next year." However, high inflation is likely to subside as supply constraints are resolved, the Fed chair stressed.

Baha Breaking the News (BBN) / MS