Comments to reporters
- Difficult to know how tax bill will play out
- His base case is 2-3 rate hikes in 2018
- Most-recent research suggests neutral rate has declined
- Fed should be extremely cautious is yield curve approaches inversion
I don't understand what the Fed is thinking with the worries on inflation. They literally manipulate the yield curve. If they don't want it to invert, they could simply sell some of the long bonds. And if they think signals from the market are so important, they shouldn't be messing with it.
