How soon might the FOMC boost its growth projections and might “taper” be openly discussed by the Jackson Hole Symposium?: The MUFG Global Markets Podcast

In this podcast, U.S. Rates Strategist, John Herrmann cites several upside risks for growth at the start of the new year 2021, and he believes that the FOMC might very soon acknowledge a strengthened outlook by the March 16-17 FOMC Meeting. By the June 15-16 Meeting, it should be quite evident to all participants that the U.S. economy is either tracking its strong growth outcome or not. Should our growth-strengthened growth forecast prove accurate, then might the Committee begin a more outward (and inward) discussion over “tapering” of asset purchases – by mid-summer 2021 or by the Jackson Hole Symposium?

The Committee has an enormous task to taper asset purchases from $120.0 billion to $0.00 per month. Does it make sense to wait until 2022 to start outlining and planning the taper?

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