Economics
Powell’s Fast-Taper Signal Presages Agile Fed on 2022 Rates
- Fed seen on track to speed up bond taper as unemployment falls
- With taper wrapping earlier, path clear for rates to be raised
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Jerome Powell’s pivot toward a quicker withdrawal of stimulus paves the way for a more agile Federal Reserve in 2022, one that’s willing to raise interest rates faster than expected if inflation lingers or hold back if the pandemic worsens.