Market commentary with Joachim Döring

Our experts don’t only monitor the capital markets intensively, but are also active market participants in the interest of our clients on a daily basis. Here you can regularly find the latest market commentary of our expert Joachim Döring, Head of Wealth Management.

24. September 2021

Fed tapering

In spring 2013, after years of crisis, the US Federal Reserve (Fed) announced for the first time that it wanted to consider reducing its bond purchases. At the time, this consideration alone triggered a rollercoaster ride on the markets and the Fed ultimately had to postpone the measure. Currently, the Fed is in the same situation, but the communication is coming across much better to the markets. At the press conference last Wednesday, it was not said directly, but in principle, the roadmap is clear: In November, the Fed will decide to reduce its bond purchases and stop them by mid-2022. The first increase in key interest rates will follow in late 2022 or early 2023. Exactly when will depend on the current data situation at that time. The markets had probably feared worse and reacted positively to these messages. In perspective, therefore, the development of 2015 to 2018 will repeat itself: Rising key interest rates in the USA and unchanged zero interest rates in the euro area. Stay healthy!

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Joachim Döring