Market news
21.10.2021, 14:33

Fed's Waller: There should be no big market shock when taper begins

There shouldn't be a big market shock when the Federal Reserve starts reducing its asset purchases, Federal Reserve Governor Christopher Waller said on Thursday, as reported by Reuters.

Additional takeaways

"There is no theory of how large a central bank's balance sheet should be."

"Current size of the balance sheet has caused no problems for financial market or macroeconomy."

"We can run off our balance sheet by quite a margin over the next couple of years if we want to."

"I have always favored market-based surveys of inflation expectations."

"You have still got to pay attention to household inflation surveys though."

"I am looking at both sets of data on inflation expectations."

Market reaction

The US Dollar Index continues to move sideways around 93.60 after these comments.

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