The Federal Reserve did not surprise. It did not change interest rates while announcing that its plan to begin reducing its balance sheet will begin next month. Through the economic projections, the FOMC continued to signal that a hike in December is still appropriate. In fact, the dot plots show 11 of 16 of the …
Fed Stays on Course While Taking Another Step on Normalization Path Read More »
There is practically no chance that the BOJ changes policy. BOJ shares the common dilemma among major central banks. Growth is ok–above trend, which in Japan is seen as about 0.8%, but price pressures remain weak. The core rate in Japan, which excludes fresh food, is up 0.5% year-over-year. The target is 2%. The …
After much anticipation, the FOMC decision day is here. Much of the focus is on the likely decision that the Fed will allow its balance sheet to shrink gradually. No other country who employed quantitative easing has is in a position to begin unwinding the emergency expansion of its balance sheet. The Fed’s experience in QE, …