If you’d like to receive our market commentary by email every month, please click here.
The rise of the delta variant certainly weighed on the minds of Fed officials last month. At the Jackson Hole Symposium, Fed Chair Powell noted the near-term risks posed by Delta in what was considered a dovish speech that suggested that he is in no rush to taper. Expectations remain that Fed taper will be announced formally in November or December of this year, assuming that the variant begins to fade in coming months.
With a potential taper by the Fed on the horizon, this month we look at the relationship between the Fed balance sheet and S&P 500 market returns.