by Stefan Gleason
GoldSeek
‘Taper’ talk from the Federal Reserve is back in focus. But for now, it’s all talk and no action.
Last week, former New York Fed President William Dudley said the central bank will begin the process of tapering – winding down its monthly asset purchases – by year end.
While echoing current Fed policymakers’ position that the recent spike in prices is “transitory,” Dudley acknowledged the likelihood of inflation persisting above 2% longer term.
“I think in the long run, are we going to see inflation… above 2%,” he said. “I think the Fed is going to succeed in doing that.”
The latest Consumer Price Index report due out on Thursday could be a doozy. The CPI is likely to come in even hotter than last month’s 4.2% annual increase.