- Not just economic outlook
- Fed will hike rates more aggressively if financial markets are less responsive
- Fed will base tightening on short and long-term rates, credit spreads, equities and dollar
- Sharp drop in energy prices is a positive for the economy and could spur more easing from foreign central banks
- Funds rate equilibrium will likely be somewhat lower than in past due to lower potential growth
- Expects inflation to rise towards 2% target next year despite softening
- Repeats rate rise call for mid-2015 seems reasonable
He agrees that the outlook is improving and is for letting the economy “run slightly hot” for while to help get the long term unemployed back into the market. They’re mildly hawkish comments from a traditional dove.
