Description

<> Federal Reserve 'taper' of bond-purchase programme;

<> Use of 'transitory' to describe inflation being retired; Inflation will persist. However, Fed Res is positioning itself to be ready to act to prevent "more persistent, longer-term inflation"

<> Bond market participants signalling that they don't believe inflation is going to run out of control (10-y treasuries have a yield of 'only' 1.49%)

<> implications for markets