Fed Chair Jerome Powell signals 2021 taper

Speaking at the Federal Reserve's annual Jackson Hole policy symposium, Powell kept to the central bank's message that the recent bout of inflation has been largely caused by transitory factors such as supply chain disruptions. However, although he did not provide a specific timeline, Powell did suggest the $120 billion monthly asset purchase programme, designed to drag the economy out of the covid-induced recession, will be scaled back this year. The announcement provided a relatively balanced view amid a growing hawkish faction within the Federal Open Market Committee which sent US stocks to all time highs with treasuries also rallying.