Bank of America Global Research discusses the Fed policy trajectory.
"Clarida this week clarified the Fed’s policy normalization plans. Coming from him, as a dove, we believe the record has now been set straight for the Fed’s default policies. Our interpretation of his comments is that the Fed plans to announce QE tapering in the September meeting—possibly flagging it in Jackson Hole, but with the details in the September meeting—and to start QE tapering in January next year, or at least in Q1," BofA notes.
"Assuming nothing surprises next year, the Fed seems to be set to start hiking rates in Q1 2023," BofA adds.