Lyn Alden talks inflation and Fed expectations with Blockworks in Bretton Woods.
In the interview, DiMartino Booth shared her thoughts on the Fed’s Reverse Repurchasing facilities, which provide fast liquidity, meaning on an overnight basis, to money market funds.
Get your macro fix with Blockworks’ own Mike Ippolito and Tyler Neville.
Investors allocated capital towards more inflation-sensitive sectors of the market after Chair Powell reassured that inflation is transitory during the virtual meeting.
Powell said that the central bank may begin tapering its $120 billion/month asset purchases this year, although a rate hike will not be coming soon.
Investors and analysts await news from the Fed’s annual Jackson Hole policy summit while Atlanta Fed President says that tapering conditions are nearly met.
A lack of foreign government debt-buyers means the Fed may have to step up to finance US debt.
The Federal Reserve may start to taper asset purchases this year and officials discussed the risk of stablecoins, July’s FOMC meeting minutes show.
Investors are watching the Federal Reserve for signs that bond purchase tapering may start soon.