Fed Minutes: “Soon” Or “Soon”-ish

“Most participants judged that if economic information came in about in line with their expectations, it would soon be appropriate for the Committee to take another step in removing some policy accommodation. A number of participants pointed out that clarification of prospective fiscal and other policy changes would remove one source of uncertainty for the economic outlook.”

Read More

These Are The Fed’s Options To Avoid Another Taper Tantrum

” The 2013 “taper tantrum” also provides a reminder that the impact of balance sheet policy on financial conditions is uncertain and could be larger than our baseline estimate. We doubt the impact would be as large today—in 2013 markets misunderstood tapering as implying earlier rate hikes, whereas today markets would likely view earlier tapering as implying later hikes— but the risk is worth considering”

Read More