Powell is presenting the decisions on tapering asset purchases and raising interest rates as entirely separate
Tapering merely required “substantial further progress” compared to the dire situation at the end of last year, and we’re pretty much there.
Raising interest rates will require “maximum” employment, and under the new regime heralded a year ago in Wyoming, even price gains above target won’t change that; average inflation targeting, or AIT,
means that the index can be allowed to run above the official goal of 2% for a while before borrowing costs start to go up.
John Authers Bloomberg 31 August 2021
Kommentarer