US Economic Update – October 2021

The Fed is set to taper – but rate hikes are still a way off

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Key highlights:

  • We have downgraded our forecast for 2021 and 2022 GDP growth as Q3 GDP is not looking as strong as had been expected.
  • Supply disruptions – both in product and labour markets – remain major issues.
  • We expect the Fed will start tapering its monthly asset purchase program in November, with it to come to an end by mid-2022. We still don’t see any rate hikes until Q2-2023.

Find out more in NAB’s US Economic Update – October 2021