Will ‘king dollar’ reclaim its throne as the Fed tapers? – Investing.com

Will ‘king dollar’ reclaim its throne as the Fed tapers? – Investing.com

More and more Fed officials are throwing their weight behind withdrawing some liquidity in the next few months. First it was just Kaplan. Then it was Bullard. Last week it was Vice Chairman Clarida, Waller, and Daly joining this group. This week, their views were echoed by Bostic and Rosengren.

The Fed can afford to take its foot off the accelerator because the US economy is booming. Inflation is scorching hot, consumption is off the charts, and the labor market is healing its wounds quickly. Indeed, America could be back to full employment this year already.