Fed Statement: “No burger between the buns”

The “burger” was taken out at the March 17 FOMC meeting. Since then, it appears the “transmission mechanism” has broken. As Tim Duy, a well-known Fed watcher puts it: That said, the Fed will balance the inflation data against the broader economic backdrop of ongoing job growth and easier financial conditions. If the latter two trends continue, policy makers will be hard-pressed to rein in existing rate hike plans even if inflation continues to fall short of their forecasts. The traditionalists at the Fed, including Yellen, retain their fundamental Phillips curve framework. They think it is only a matter of…

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