• Given the lack of interesting movements in markets as of late (and especially overnight), we will skip the overnight comment today. Regarding the news flow, we do want to mention the tragically hilarious remarks made by St. Louis Fed chief James Bullard. According to the Bloomberg headlines he suggested the Fed should taper talk when the vaccination rate hits 75%. That’s classic case of moving the goalposts. Recall that the Fed has committed to buy bonds at the current pace until it sees “substantial further improvement” in the labor market. In any case, the US should reach the aforementioned vaccine rate somewhere in the summer. That might very well happen before the contours of “substantial further improvement” in the labor market becomes visible. In any case, (late) summer/early autumn taper talk and the tapering to commence early in 2022 is consensus these days. And Bullard doesn’t seem to stray too far from that.


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