Fed's Waller: could start taper by October, no reason to go slow

Federal Reserve Governor Christopher Waller on Monday said the US central bank could start to reduce its support for the economy by October if the next two monthly jobs reports show employment rising by 800,000 to 1 million, as he expects.

There's "no reason" to go slow on tapering the Fed's bond purchase program, Waller said in an interview on CNBC, adding that finishing up sooner would give the Fed the ability to start raising interest rates next year if needed.

There has been no reaction to the comments. The markets are already factoring out rate hikes which has weighed on the greenback.

Fed Chair Jerome Powell said last week that considerations of higher interest rates were "a ways away'' in presser which followed a hawkish turn in the statement with regards to timings of a taper.

Meanwhile, US Treasury bond yields also slipped on Monday to 1.15%, taking real yields - adjusted for inflation - to record lows.

Nevertheless, the US Nonfarm Payrolls data will be eyed this week and will be critical ahead of the Jackson Hole where some analysts are expecting a taper timing announcement. 

The Us dollar will depend on it and so too will its recovery from the daily lows as bulls target a 38.25 Fibo retracement: