U.S. | Powell Rebuts Market Optimism with Dovish Defense

Today’s statement confirms our outlook that a successful vaccination strategy is paramount to support the economic recovery, interest rates will remain low for a prolonged period and tapering remains off the table at least until 2022.

Key points

• Key points:
• Fed reaffirms the message that providing adequate accommodation is the committee’s near-term and main focus.
• Chair Powell clarifies that taper talk is premature and that getting people back to work is essential.
• FOMC remains confident that current policy will be sufficient to avoid any significant deterioration in the economic outlook or promote long-term scarring.

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