Fed Sees Progress Toward Tapering Move

The transcript discusses the Federal Reserve's minutes, highlighting a split on mortgage bond purchases and a hawkish tilt. It notes improvements in the labor market and expected inflation due to economic reopening. The Fed is cautious about asset purchases, with muted market reactions. The focus is on inflationary pressures, with debates on MBS and Treasury purchases. The market is concerned about growth and the end of the reflation trade, with the Fed monitoring economic progress.

What was the main disagreement among Fed members regarding mortgage bond purchases?

• Whether to reduce the pace of purchases

• Whether to maintain the current pace

• Whether to stop purchases altogether

• Whether to increase the pace of purchases

What was the Fed's view on the labor market according to the minutes?

• There is no change in the labor market

• The labor market is declining

• There is continued improvement

• The labor market is stagnant

What is the Fed's stance on the transitory nature of inflation?

• They are confident it is transitory

• They think it is not transitory

• They are uncertain about its transitory nature

• They believe it is permanent

What progress is needed before the Fed starts tapering asset purchases?

• Substantial further progress

• Immediate progress

• No progress

• Minimal progress

What is Ellen's perspective on the market's reaction to the Fed's actions?

• The market is indifferent

• The market is overly optimistic

• The market is pessimistic

• The market is aware of various scenarios