Nordea with the note:
A relatively aggressive dot-plot makes for a hawkish read-through to a potential tapering time-plan towards the end of this year. We also seem to have passed ”talking about talking about tapering” to actually talking about tapering.
Highlights:
– 7 members of the FOMC committee expect lift-off in 2022, while 2 hikes are signalled in 2023. Hawkish!
– Tapering seems to have moved closer – don’t rule out a decision in September!
– The interest on excess reserves (and ON RRP) is hiked by 5 bps to mitigate the side-effects of the flood of USD liquidity.
