Nomura Sees Fed Announcing Balance Sheet Tapering Sept.

The transcript discusses the Federal Reserve's plans to taper its $4.5 trillion balance sheet, with expectations for an announcement in September and commencement in October. It highlights the potential market impact of quantitative tightening, especially in the context of the ECB's asset purchase tapering. The discussion also covers the US economic outlook, noting a mature growth cycle and tightening labor market, but with moderate wage growth. Financial conditions remain accommodative, with equity markets high and the US dollar weakening, reducing previous headwinds for the Fed.

In what ways is wage growth expected to change in the near future?

What factors are contributing to the Fed's decision-making process regarding rate hikes?