No decision on tapering, but lots of talk. Consensus is that the inflation goal has been accomplished -- but because it's supposed to be transitory, maybe it's not accomplished. Maximum employment not accomplished, but seems on track to justify a taper announcement by end of year.
What you aren't hearing about the Fed's taper talk
Thursday, August 19, 2021
How can the FOMC declare "mission accomplished" on inflation when it is transitory?
Update to Strategic View
The minutes of the July FOMC show a divided committee, confused by confusing data and forecasts. They admit that the "substantial further progress" required for tapering has not been met for the maximum employment mandate, but has been for price stability. And yet the minutes admit that the present high levels of inflation are transitory, and that long term yields are falling and market-based inflation expectations are narrowing. History shows an almost perfect record for the effectiveness of Large Scale Asset Purchases in widening inflation expectations, at least directionally. But having rarely achieved its 2% target, it would seem that the Fed has failed to do LSAP's big enough or long enough. The Fed will lose credibility if it makes the same mistake yet again.