Fed on track to taper by year-end - UBS

UBS reacts to Friday's solid non-farm payrolls report

The firm comments that:

" Payrolls are 5.7 million below their pre-pandemic peak and that gap is narrowing month by month. The recent increase in COVID-19 case counts adds some uncertainty to the outlook, but we still expect strong job growth in the months ahead."

Adding that by year-end, there should be enough progress to allow the Fed to announce tapering of its QE asset purchases.

ING also shares the same view, noting that with consumer price inflation set to hit a new high this week, it points to inflation staying higher for even longer and risks are skewed towards an earlier QE tapering announcement before year-end.

h/t @ Francesc_Forex