Fed would have benefited from earlier decision to taper, end QE in 2021 – Bowman Justin Low Forexlive RSS Breaking News Feed

That would have allowed for earlier rate hikesWould have supported either waiting to slow QT pace or a more tapered slowing in balance sheet run-offIn the future, Fed should signal that QE is temporary and unwound when market conditions normalisePrefer for FOMC statements to use more words to describe current economic assessment (Mester)Also to describe how it influences the outlook and the risks to that outlook (Mester)Expects the Fed will consider communications as part of its next policy framework review (Mester)

There’s nothing in there that touches on the current policy settings. It’s mostly a lot of the nuances involving monetary policy and the communique behind that. But I guess the headline remark speaks to how the Fed is lacking the courage to be bold these days.

This article was written by Justin Low at www.forexlive.com.That would have allowed for earlier rate hikesWould have supported either waiting to slow QT pace or a more tapered slowing in balance sheet run-offIn the future, Fed should signal that QE is temporary and unwound when market conditions normalisePrefer for FOMC statements to use more words to describe current economic assessment (Mester)Also to describe how it influences the outlook and the risks to that outlook (Mester)Expects the Fed will consider communications as part of its next policy framework review (Mester)There’s nothing in there that touches on the current policy settings. It’s mostly a lot of the nuances involving monetary policy and the communique behind that. But I guess the headline remark speaks to how the Fed is lacking the courage to be bold these days.

This article was written by Justin Low at www.forexlive.com.  Read MoreCentral Banks 

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