Having heard “the same” from the US Federal Open Market Committee (FOMC), Goldman Sachs came out with a hawkish update suggesting the tapering countdown to start from September 21-22 meeting.
Goldman also expects the formal announcement to roll out in the December FOMC meeting.
Read: Powell speech: There is little support for tapering MBS earlier than Treasuries
It’s worth mentioning that the US Fed Funds Futures show market fully pricing in 25 basis-point tightening by March 2023 following the FOMC announcement. The same should recall the US dollar bulls despite the recent meh to the Fed announcements.
Currently, updates over infrastructure spending become the key, as well as Q2 US GDP, for near-term market moves.
Read: Gold Price Forecast: XAU/USD stays firmer above $1,800 after Fed showdown