European Central Bank to Announce Tapering

The European Central Bank will announce the reduction of its Covid-related stimulus in December. In the United States, the Federal Reserve has already signaled it is likely to start tapering before the end of the year. Chairman Jerome Powell said last week that the U.S. economy is at a point where it does not need as much policy support as had been the case in the wake of the pandemic, though the pace at which asset purchases will be reduced is yet to be decided. The ECB will also want to see what happens with the pandemic in the coming months, but it is unlikely even the most dovish members of the ECB would postpone an announcement on tapering beyond December.