Original title: the annual meeting of global central banks will be held this week, waiting for the Fed to declare its position.
The annual Jackson Hole annual meeting of global central banks, which will be held this week, has long been seen as a bellwether for the next phase of policy by central banks around the world, especially the Federal Reserve, as well as this year's meeting. It is widely expected that Federal Reserve Chairman Colin Powell will disclose more details of the plan to scale back bond purchases at this meeting.
In response to the impact of the COVID-19 epidemic, the Federal Reserve has been buying $80 billion of US Treasuries and $40 billion of mortgage-backed securities every month since last year to provide additional stimulus to the economy. Now, the Fed is facing the key point of when to start withdrawing excess loose monetary policy during the epidemic. Judging from past experience, Powell may drop a "blockbuster" at this meeting. In addition, strong US jobs data and stubbornly high inflation data over the past two months have strengthened the likelihood that the Fed will start scaling back its bond purchases earlier than expected.
Some analysts believe that the Fed is pushing for an end to its asset purchase program by the middle of next year, which means that it will be completed within eight months. Therefore, in the face of the Fed's retrenchment plan, the market is still worried about the occurrence of a new round of "tapering panic".
(Wu Jiaming)