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16:24 · 19 November 2021

FED Waller supports faster tapering - gold directionless

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Waller, which is a permanent voting member in the FOMC, has an important voice when it comes to potential changes in monetary policy. He’s today's comments are very similar to Williams from yesterday. We could hear similar statements from Evans and Bostic.

  • improvement in the labor market, high inflation indicate the need for faster tapering and more rapid  interest rate increases
  • inflationary pressure is broad-based, and will remain high in 2022, longer than expected
  • the labor market will quickly reach full employment
  • balance sheet reduction will allow markets to function smoothly
  • Waller wants a similar process in reducing the balance sheet as before

Despite further hawkish comments, there is little reaction in the market. The dollar is a bit weaker and gold is left with no direction today, although comments on an interest rate hike should rather lead to a pullback from the current supply level. Source: xStation5

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