The Fed: the recovery is on track, tapering is approaching
- The July meeting brought little new information. The Fed remains confident that the labour market recovery will gather speed and that the spike in inflation is temporary, although may last longer than expected.
- Upside risks to inflation seems to be more concerning than downside risks to growth related to a new wave of infection.
- The FOMC has started discussing tapering, and we continue to expect it to begin in January.