US Fed chief talks tapering in 2021 at Jackson Hole symposium

US Federal Reserve Chairman Jerome Powell reiterated that a decision to taper off the Fed’s $120bn in monthly asset purchases doesn’t mean it will be raising interest rates at the same time.

United States Federal Reserve Chairman Jerome Powell kicked off this year’s annual Jackson Hole Economic Policy Symposium on a positive note, telling policymakers he believes “substantial further progress” has been made on some metrics and signalling he believes the time is right for the Fed to start tapering off some of its economic support. “My view is that the substantial further progress test has been met for inflation,” Powell said Friday. “There has also been clear progress toward maximum employment.” Powell’s remarks were delivered virtually after a surge in COVID-19 cases in Wyoming forced organisers to scrap in-person plans for the annual symposium, which draws central bank leaders, academics, government officials and other market participants from around the world.