November 9, 2017

The Fed´s “doom machine”

Tim Duy “terrorizes” in his “Fed will keep rate hikes coming”: Lots of news from last week, most of which supported the Fed’s current anticipated rate path of one 25bp hike in December followed by three more in 2018. The only potential obstacle on that path is the persistent weakness of inflation. But the ongoing decline in the unemployment rate, along with the promise of further declines in the months ahead, will dominate lingering concerns at the Fed regarding the inflation numbers. That´s exactly Yellen´s thinking: It’s important to try to estimate the unemployment rate that is equivalent to maximum… Read More