The FOMC meeting of 21-22 September will mark a watershed for the Federal Reserve’s monetary policy. The Committee should officially open the discussion on reducing asset purchases, albeit without providing details on the operational technicalities and timeline of the tapering. We believe the reversal on the purchase programme will be announced in detail in November and begin in December. During the press conference, Powell should stress that the conditions to start tapering are substantially different from those required to start hiking rates: the reversal on rates is still very distant and not directly tied to the purchase programme.

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