Goldman Says Fed May Accelerate Tapering in January: Report

The new projection means the asset purchase program would end in March.

AccessTimeIconNov 26, 2021 at 11:06 a.m. UTC
Updated May 11, 2023 at 5:27 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Having kicked off the unwinding of the crisis-era stimulus this month, the U.S. Federal Reserve may accelerate the pace of the tapering next year, according to a Bloomberg report, citing a client note from Goldman Sachs.

  • The central bank will double the pace of scaling back its liquidity-boosting asset purchases to $30 billion per month from the current $15 billion, Goldman economists said, predicting three rate hikes in 2022 and two in 2023.
  • The new projections mean the asset purchase program would end in March.
  • The investment banking giant expects the first rate hike from near zero will come in June.
  • “The increased openness to accelerating the taper pace likely reflects both somewhat higher-than-expected inflation over the last two months and greater comfort among Fed officials that a faster pace would not shock financial markets,” economists led by Jan Hatzius noted.
  • The Fed cut rates to nearly zero and began purchasing assets worth $120 billion per month following the coronavirus-induced crash of March 2020.
  • The massive liquidity injections led to unprecedented risk-taking across all corners of the financial market, including bitcoin.
  • Minutes from the Fed’s November meeting released Wednesday showed a growing number of policymakers were ready to speed up pace of the taper and raise interest rates if inflation continues to run high.
  • Faster unwinding of stimulus, if any, may weigh over bitcoin, which remains vulnerable to fed tightening, and asset prices, in general. The cryptocurrency fell almost 7% on Friday amid a massive pullback in the financial markets as concerns over a new coronavirus variant damped risk appetite.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Omkar Godbole

Omkar Godbole is a Co-Managing Editor on CoinDesk's Markets team.

Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to to register and buy your pass now.