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.

15. October 2021

Fed tapering becomes more likely

The U.S. Federal Reserve (Fed) pursues several objectives simultaneously. On the one hand, it wants to keep inflation under control, and on the other, it wants to promote the development of the economy. In the current phase, the focus is on reducing unemployment. In the past few days, there have been new data on both targets. For example, the unemployment rate fell to 4.8 percent in September. At the height of the Corona crisis, it had stood at 14.7 percent. Now that the worst seems to be over, the Fed can turn its attention to inflation. Inflation was again very high in September at 5.4 percent. While prices for rental and used cars are calming down again, the persistent rise in housing costs is striking. Against this background, it is clear to me that the Fed will decide to cut its monthly bond purchases at its meeting in early November. This will be the first step on the road to normalizing U.S. monetary policy. However, the ECB is still far from following the Fed's path. Stay healthy!

Joachim Döring