Comments from San Francisco Fed President Williams: Fed to be data-driven, not date-driven on liftoff We need strong stimulus to keep economy on track Don’t remove policy accommodation prematurely
Fischer: The US can grow at a reasonable rate, although slower, even if the rest of the world is relatively slow.
Taxes need to be reformed Infrastructure is erroding Much more needs to be invested in infrastructure US in ‘awful fiscal policy mess’ I don’t think the Maastrict Treaty applies to the biggest countries in the eurozone He’s really shooting from … Continue reading
Separately, Dijsselbloem is saying that central banks have done so much and that governments need to do more.
Comments from Fischer at an IMF forum: Rates will probably rise ‘relatively slowly’ but it will be data driven. We think capital markets have it ‘relatively right’ “Markets have it relatively right, somewhere in the middle of the year”
Comments from Fed’s Lacker: Says policy must ensure inflation expectations do not drift from 2% goal Expects inflation to gradually converge on 2% No more labor underutilization now than in past when unemployment was 5.9% before Sees slow employment growth, … Continue reading
WSJ Fedwatcher Jon Hilsenrath is out with his review of the FOMC minutes and (like the market) he notes the dovish slant: These worries about global growth and the economic impacts of a strong dollar represent a new twist in … Continue reading
Most of the US dollar rally over the past two months was built on the idea that the Fed was moving toward rate hikes but the closer you look the less certain it seems. The market is acting like it … Continue reading
The market wants a sign that the Federal Reserve will remove the pledge to keep rates low for a “considerable time” but the minutes showed that support for a more hawkish stance is limited. The dollar dropped at least a … Continue reading
Highlights of the FOMC minutes released Oct 8, 2014: Several felt guidance signaled too long to lift-off Some said change in guidance could be misinterpreted Some saw rising dollar as risk to exports and growth Fed officials saw global slowdown … Continue reading