US FOMC: Taper conditions “all but met”

22 September 2021  
5 min read

Commenting on the Federal Open Market Committee statement, Melanie Baker, senior economist at Royal London Asset Management said: 

“Asset purchase tapering looks set to start by the end of the year, but the US is still some time away from a rate rise. While Chair Powell indicated he thought the test for a taper was “all but met”, the test for a rate rise is tougher.

“Covid has set back the recovery a bit over the summer but fundamentals supporting US growth are still strong - especially assuming the promised fiscal bills are passed in the next month or so. The US should move closer to its maximum employment goal over the next 12 months, leaving a rate rise very much a live possibility for the second half of next year.”

About Royal London Asset Management (RLAM):

Established in 1988, Royal London Asset Management (RLAM) is one of the UK's leading fund management companies, providing investment management solutions to both wholesale and institutional clients such as not-for-profit organisations, local authorities and the insurance sector.

RLAM manages £164 billion of assets and employs 129 investment professionals as at 31 December 2021. It invests in all major asset classes including UK and overseas equities, government bonds, investment grade and high yield corporate bonds, property and cash.

For professional clients only, not suitable for retail investors.

Issued by Royal London Asset Management Limited, registered in England and Wales number 2244297; authorised and regulated by the Financial Conduct Authority. Registered Office: 55 Gracechurch Street, London, EC3V 0RL.

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