2018-03-21 06:32:00 Wed ET
federal reserve monetary policy treasury dollar employment inflation interest rate exchange rate macrofinance recession systemic risk economic growth central bank fomc greenback forward guidance euro capital global financial cycle credit cycle yield curve
Fed Chair Jerome Powell increases the neutral interest rate to a range of 1.5% to 1.75% in his debut post-FOMC press conference. The Federal Reserve raises the interest rate for the sixth time since the Federal Open Market Committee (FOMC) near-zero rate lift-off in December 2015. The Fed Chair transition from Yellen to Powell indicates a moderate monetary policy regime switch from dovish to hawkish in accordance with the recent FOMC minutes.
The Federal Reserve now targets a core PCE inflation rate above 2.1% as the U.S. unemployment rate gradually declines to the lowest level of 3.8%-4.1% in 17 years. Most dynamic stochastic general equilibrium (DSGE) New Keynesian economic models suggest that Powell has to trade off near-full employment with inflationary momentum. As inflation picks up over time, Powell must gradually raise the neutral interest rate to tame upward price gyrations when the U.S. economy operates near full employment.
Former Fed Chair Janet Yellen might prefer to keep the lower interest rate for a longer period of time, whereas, Powell departs from this lower-for-longer dovish and accommodative monetary policy stance in response to key FOMC hawks who express deep concerns about high inflation or price instability.
If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.
2023-05-21 12:26:00 Sunday ET
Amy Chua and Jed Rubenfeld suggest that relatively successful ethnic groups exhibit common cultural traits in America. Amy Chua and Jed Rubenfeld (2015)
2017-11-05 09:45:00 Sunday ET
President Trump criticizes the potential media merger between AT&T and Time Warner, the latter of which owns the anti-Trump media network CNN. President
2018-08-19 10:34:00 Sunday ET
The World Economic Forum warns that artificial intelligence may destabilize the financial system. Artificial intelligence poses at least a trifecta of major
2019-09-05 09:26:00 Thursday ET
Yale macro economist Stephen Roach draws 3 major conclusions with respect to the Chinese long-run view of the current tech trade conflict with America. Firs
2020-04-03 09:28:00 Friday ET
The Intel trinity of Robert Noyce, Gordon Moore, and Andy Grove establishes the primary semiconductor tech titan in Silicon Valley. Michael Malone (2014)
2017-01-03 03:26:00 Tuesday ET
President-Elect Donald Trump wants Apple and its tech peers to consider better and greater high-tech job creation in America. Apple has asked its primary