Fed Expects Tapering Later This Year, Wall Street Finishes Higher
U.S. stocks closed higher on Friday as investors digested the U.S. Federal Reserve speech on asset tapering later this year. 
U.S. stocks closed higher on Friday as investors digested the U.S. Federal Reserve speech on asset tapering later this year.
30 ส.ค. 2564

At the Jackson Hole economic symposium, Fed’s Chair Jerome Powell stated that the Fed could start tapering its current $120 billion asset purchases this year as the central bank is carefully assessing the risks from the Covid-19 Delta variant, while seeing interest rate hikes are still ways off.
 
As investors speculate on the asset tapering to give some signal on changes in policy rate, Powell cautioned that a move to start tapering asset purchases should not be interpreted as a sign that rate hikes would soon follow.
The Fed has been keeping policy rate at a record low, which is near zero, even with an increase on the inflation rate that is said to be only a temporary hike.
“Inflation at these levels is, of course, a cause for concern. But that concern is tempered by a number of factors that suggest that these elevated readings are likely to prove temporary,” said Powell.
Still, the statement did not give a specific date on the beginning of tapering.
 
The Dow Jones Industrial Average closed 242.68 points or 0.69% at 35,455.80 points. Meanwhile, the S&amp;P 500 rose 0.88% and the Nasdaq increased 1.23%.