Fed’s Daly Expects Tapering in Late 2021 or Early 2022

The President of the Federal Reserve Bank of San Francisco, Mary Daly, expects the Federal Reserve will begin tapering before the end of 2021, since the economy is really shaping up nicely.

Speaking to the Associated Press on Friday, Daily said that “it is appropriate to consider tapering asset purchases later this year or early next year.”

“That timeframe has been evolving of course, but I really see the economy as being able to start functioning more and more on its own, which means we can withdraw a little bit of our accommodation, of course not the majority of it.”

“We are still not near our full employment goals. We are still likely to be missing, going forward, on our inflation target, our price stability goals, despite the temporary runups in measured inflation.”

“Those are things I’m really rigorously sticking to.”