Fed to wait until November for taper announcement – CNBC survey

The US Federal Reserve (Fed) is unlikely to announce tapering until its November monetary policy meeting, the latest CNBC Fed survey of 32 market participants showed.

Key findings

“Expect the Federal Reserve to announce a reduction in its $120 billion in monthly asset purchases in November and begin to taper in December. The Fed is expected to cut purchases each month by $15 billion.”

“The first rate hike does not come until the end of next year.”

 “17 forecast a November announcement.”

“Among the minority are several who believe the Fed is taking risks with inflation.”

“Growth is now forecast at 5.7% for 2021, down almost a full percentage point from the July survey. Respondents said they reduced their outlook for GDP by 0.65 percentage point because of the economic effects of the delta variant.”

“Respondents see the S&P topping 4,500 by the end of this year and rising to 4,765 by the end of next year. The 10-year yield will only top 2% by the end of next year.”