Powell, Yellen Testify Before Senate

Everybody’s baseline forecast will now be for the Fed to accelerate the tapering of its bond purchases at the Dec. 15 meeting.

Economics late yesterday predicted that the Fed would double the pace of acceleration, to $30 billion a month starting in January. That would wrap up the Fed’s QE by mid-March.

In a testimony, Tuesday, before the Senate, Fed Chair Jerome Powell has said that it’s time to retire the word ‘transitory’ for inflation and price pressures have moved beyond Covid trigger.

“We will know more about the new variant in a week or 10 days, and “only then” can the Fed make an assessment”, Powell added while he stressed that he is listening to experts for information on the new variant.

Secretary Janet Yellen has warned of recession if debt limit not addressed, she also links recovery’s progress to fight against pandemic.