In an interview with Reuters on Wednesday, Dallas Fed President Robert Kaplan argued that the taper of the Fed’s bond purchases should start soon and be gradual. “Questioning efficacy of Ded’s asset-purchase program; won’t speed labor market matching process.” “Reducing Fed’s asset purchases soon gives it flexibility to be patient on interest rate hikes.” “Faster taper does not mean Fed will raise rates faster.” “It is critical to divorce decision on taper from decision on rates.” “Gradual taper could mean trimming monthly purchases of treasuries by $10 billion, mortgage-backed securities by $5 billion.” “Seeing taper taking about eight months.” “Delta variant of coronavirus could slow job gains but won’t slow recovery unless vaccines prove less effective in preventing hospitalizations, deaths.” “Will reassess next month his own view from June that 2022 interest rate hike would be appropriate.” Nick Note: The FED has really fucked up this time. FAR FAR to much stimulus. And the hell of it more coming with the misguided stimulus bill about to pass. The most money ever pushed into the economy and bond and stock market ever. Turkeys are forced fed to fatten them as quickly as possible to get them to market. If they force feed them to much their stomachs burst and they die. In the economy force feeding to to much and you spark off embedded inflation. Which in incredible stupid policies they have accomplished. The Fed will soon have no choice to raise rates very quickly plunging the economy into a depression. And then they will panic as they burst the bubbles they created. Plunging the economy into a depression ultimately giving us double digit NEGATIVE interest rates.