Jerome Powell, the Chair of Federal Reserve made an <a href="https://www.bloombergquint.com/global-economics/powell-says-fed-could-begin-tapering-bond-purchases-this-year" target="_blank" rel="nofollow noopener">announcement</a> that said the Central Bank could start reducing its monthly bond purchases this year. However, he mentioned that it won’t be in a hurry to start raising interest rates thereafter. 
<h2>Federal Reserve Chair Jerome Powell Says Central Bank Might Reduce Monthly Bond Purchase</h2>
In a virtual speech conducted on Friday to the annual Jackson Hole symposium of the Kansas City Fed, the chief of the Federal Reserve, Jerome Powell said:

The economy has now met the test of “substantial further progress” toward the Fed’s inflation objective that Powell and this would be a precondition for tapering the bond-buying, while the labor <a href="https://www.cryptoknowmics.com/news/u-s-federal-reserve-discusses-crypto-with-market-experts">market</a> has also made “clear progress.”
In addition to this, Powell revealed at the most recent policy meeting in late July at the Fed,”
<blockquote>“I was of the view, as were most participants, that if the economy evolved broadly as anticipated, it could be appropriate to start reducing the pace of asset purchases this year.”</blockquote>
Mentioning the strong employment report for the month of July, he said:
<blockquote>“The intervening month has brought more progress in the form of a strong employment report for July, but also the further spread of the delta variant. We will be carefully assessing incoming data and the evolving risks.”</blockquote>
<h2>The Rise of S&amp;P 500 Amid Fed’s Surprise to the Market</h2>
The investors in the market took the news in a positive way as Fed <a href="https://www.cryptoknowmics.com/news/u-s-federal-reserve-publishes-preconditions-for-its-cbdc">announced</a> suddenly that it would start to pare back asset purchases and addressing this news, the Chief Economist at Pantheon Macroeconomics, Ian Shepherdson said:
<blockquote>“Chair Powell stuck to the script in his Jackson Hole speech; anyone hoping for a steer on the timing of the taper will have been disappointed, but it was never likely.”</blockquote>
Along with this, it should be noted that Jerome Powell warned that a move to start winding down the bond-buying program should not be taken as a sign that rate hikes would follow soon. He said:
<blockquote>“The timing and pace of the coming reduction in asset purchases will not be intended to carry a direct signal regarding the timing of interest-rate liftoff, for which we have articulated a different and substantially more stringent test.”</blockquote>

Jerome Powell, Fed Reserve Chair Says Central Bank Could Start Taper in 2021

Jerome Powell, the Chair of Federal Reserve made an announcement that said the Central Bank could start reducing its monthly bond purchases this year.

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Jerome Powell, Fed Reserve Chair Says Central Bank Could Start Taper in 2021

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