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 factors did the participants consider when discussing MBS purchases?

What concerns did the market have regarding growth as discussed in the conversation?