Notes From The Desk | FOMC Announcement July 28 2021

The Federal Reserve really knows how to thread the needle, having dropped hints about tapering without freaking-out the markets.

The As Expecteds.

· No change to the overnight rate
· Still hold that the recent bout of high inflation is transitory
· Quantitative easing continues as is

The Surprises.

· Not seriously concerned that the Delta variant will derail the economy
· Hinted that tapering is being discussed, as the economy has made progress towards the Fed’s goals.