Indeed, San Francisco Fed President Mary Daly said after the CPI report that it is “premature” to change the calculation about raising interest rates. Powell has made it clear that the central bank would not raise interest rates while it is still buying bonds. However, there is good reason to believe that such a move would unnerve people, potentially causing a taper tantrum. POLICYMAKERS SPLITRight now, policymakers are split between raising interest rates or leaving them unchanged next year. If that happens, look out for “Taper Tantrum 2.0.”Brian Chappatta is a Bloomberg Opinion columnist covering debt markets.

Source: Taipei Times November 13, 2021 18:59 UTC