VoiceOver users please use the tab key when navigating expanded menus

From the floor


Tapering ahead?

The timing of the “inevitable” reduction of the US Federal Reserve’s asset buying is still unclear, according to ANZ Economist Adelaide Timbrell, in the wake of the minutes of the Fed’s latest meeting.

Speaking at an ANZ briefing, Timbrell said the timing of the long-expected ‘taper’ was still “really uncertain”, but the Fed had signalled future discussion about tapering in the minutes.

ANZ Research does not expect to see “any cash-rate hike soon, because they do have some tapering to do before that”, she said.

“Even though this is something considered pretty inevitable in the economic landscape that we're in, there might still be some market volatility in parts of the market still pretty drunk on that hyper easy monetary policy,” Timbrell said.

You can listen to the comments in the podcast below.

 

ANZ Institutional’s new ‘From the Floor’ series offers you a unique insight into the view of ANZ’s economists, shared with other economists, from the floor of ANZ’s dealing room.

 

Timbrell said growth in the broader US economy continues to be “pretty strong”, noting recent record-high readings in manufacturing and services indexes.

“Price and demand is strong, but is not quite there yet, she said.

Conditions in Europe are quite similar to the US.

“We're seeing really strong lift [in the Europe area], particularly in services,” she said.  “That's due to the improving vaccination program and also a gradual lift in [pandemic-related] restrictions.

ANZ Stateometer: momentum building

Read more

This publication is published by Australia and New Zealand Banking Group Limited ABN 11 005 357 522 (“ANZBGL”) in Australia. This publication is intended as thought-leadership material. It is not published with the intention of providing any direct or indirect recommendations relating to any financial product, asset class or trading strategy. The information in this publication is not intended to influence any person to make a decision in relation to a financial product or class of financial products. It is general in nature and does not take account of the circumstances of any individual or class of individuals. Nothing in this publication constitutes a recommendation, solicitation or offer by ANZBGL or its branches or subsidiaries (collectively “ANZ”) to you to acquire a product or service, or an offer by ANZ to provide you with other products or services. All information contained in this publication is based on information available at the time of publication. While this publication has been prepared in good faith, no representation, warranty, assurance or undertaking is or will be made, and no responsibility or liability is or will be accepted by ANZ in relation to the accuracy or completeness of this publication or the use of information contained in this publication. ANZ does not provide any financial, investment, legal or taxation advice in connection with this publication.