The Fed's Inflation Taper Is Getting Closer to Zero

Inflation really popped upright in the late spring last year. And we had a view, it was very, very widely held in the forecasting community, that this would be temporary. But recently, jerome powell said that it was time to retire the word transitory. His views had changed. Then in september, i'd say, after labor day,. We started to see, it started to become clear that this was both larger in its effect on inflation and more persistent. This is the taper they want to get down to zero. That is, not buying any bonds before they increase interest rates.