It is widely believed that the July FOMC statement will remain virtually unchanged. From the threat of the highly contagious Delta virus variant, expiring eviction moratorium and extra unemployment benefits, there are just too many uncertainties for the Fed to press the pedal on taper. U.S. data has also been mixed. Considering that most policy-makers believe that inflation is transitory, they can wait until their symposium at Jackson Hole in August or even September to see if these uncertainties have a significant impact on the economy. This afternoon, the White House said there’s “no significant signs” of economic impact from the Delta variant, but if restrictions in the U.S. returns, then the outlook will darken quickly. Just today, the Center for Disease Control and Prevention adjusted its mask guidance to recommend that fully vaccinated people resume wearing masks indoors in states where the virus is surging. It also recommended mask wearing in schools for teachers, staff, students and visitors regardless of vaccination status.