Tagged: Yellen

Yellen the hawk

The Fed economic projections were dovish, with inflation forecasts for next year slashed, while the median dot fell for the first time since they were introduced: CPI: 2015 1.3 from 1.75 2016 1.85 unch 2017 1.9 from 1.95 Unemployment: 2015  5.25 from 5.5 2016  5.1 from 5.25 2017  5.1 unch GDP unch Dots: 2015 median…

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All you need to know is Kocherlakota, not Plosser, dissented

Summary of the main points from the FOMC below but all you really need to know about the Fed is that the dissenter was uber-dove Kocherlakota, rather than uber-hawk Plosser. The discussion clearly had more of a hawkish tone than a dovish one. Key changes to the statement: * Underutilisation of labour resources is no…

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Ahead of #J-Ho, A reminder of the argument of the #FOMC hawks

Yes, we are really calling it J-Ho. Jackson Hole just got Twittered. Ahead of that, here’s a reminder of the charts from the presentation by Bullard on just how close the Fed is to achieving the goals of its dual mandate (first released 9th June, updated 17 July) http://bit.ly/1p0aybf: 1. The Fed is closer to its…

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Stanley Fischer speaks

SUMMARY: The labour market still looks weak The housing market is still vulnerable to higher rates So the US may be facing a ‘secular slowdown’ ….But it’s very uncertain Low interest rates can play their part, and macroprudential policies can stave off financial stability risks He’s more Yellen than not (he now says Fwd Guidance…

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Schizophrenic #FOMC

How to reconcile these two recent comments from Janet Yellen? ‘Because a resilient financial system can withstand unexpected developments, identification of bubbles is less critical.’ (2 July) ‘While prices of real estate, equities, and corporate bonds have risen appreciably and valuation metrics have increased, they remain generally in line with historical norms. In some sectors,…

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