Incoming New York Fed President John Williams suggests that it is about time to end forward guidance.

Becky Berkman

2018-05-13 08:33:00 Sun ET

Incoming New York Fed President John Williams suggests that it is about time to end forward guidance in order to stop holding the financial market's hand. As the current president and chief research director of San Francisco Federal Reserve Bank, Williams expects U.S. inflation to rise to the central bank's 2% target in mid-2018. This inflation expectation resonates with the key consensus that most FOMC members share in the recent central bank forum. The inflation rate can stay above the 2% target for another couple of years even as the Federal Reserve continues the current interest rate hike toward late-2019. Also, Williams shares and echoes Fed Chair Jerome Powell's recent open statement that the Federal Reserve should complete the current course of forward guidance.

In fact, economic media commentators and stock market investors should focus on economic data such as real GDP economic growth, employment, wage growth, capital investment, and industrial production etc. It is thus futile for financial market observers to read into the FOMC minutes, narratives, and word choices etc for key clues about the U.S. macro economy. The FOMC minutes and linguistic analytics can be informative to some extent, whereas, only economic data drive monetary policy decisions.

 


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.

Blog+More

Capital structure theory and practice

Jonah Whanau

2022-03-15 10:32:00 Tuesday ET

Capital structure theory and practice

Capital structure theory and practice  The genesis of modern capital structure theory traces back to the seminal work of Modigliani and Miller (1958

+See More

Americans continue to keep their financial New Year resolutions.

Jonah Whanau

2019-01-15 13:35:00 Tuesday ET

Americans continue to keep their financial New Year resolutions.

Americans continue to keep their financial New Year resolutions. First, Americans should save more money. Everyone needs a budget to ensure that key paychec

+See More

Barry Eichengreen compares the Great Depression of the 1930s and the Great Recession as historical episodes of economic woes.

Olivia London

2023-03-21 11:28:00 Tuesday ET

Barry Eichengreen compares the Great Depression of the 1930s and the Great Recession as historical episodes of economic woes.

Barry Eichengreen compares the Great Depression of the 1930s and the Great Recession as historical episodes of economic woes. Barry Eichengreen (2016)

+See More

The Chinese Xi administration may choose to leverage its state dominance of rare-earth elements to better balance the current Sino-U.S. trade war.

Dan Rochefort

2019-06-13 10:26:00 Thursday ET

The Chinese Xi administration may choose to leverage its state dominance of rare-earth elements to better balance the current Sino-U.S. trade war.

The Chinese Xi administration may choose to leverage its state dominance of rare-earth elements to better balance the current Sino-U.S. trade war. In recent

+See More

Generative artificial intelligence (Gen AI) uses large language models (LLM) to create online contents with better human productivity.

Monica McNeil

2024-10-31 09:26:00 Thursday ET

Generative artificial intelligence (Gen AI) uses large language models (LLM) to create online contents with better human productivity.

Generative artificial intelligence (Gen AI) uses large language models (LLM) and content generation tools to enhance human lives with better productivity.

+See More

Peter Schuck analyzes U.S. government failures and structural problems in light of both institutions and incentives.

Dan Rochefort

2023-04-28 16:38:00 Friday ET

Peter Schuck analyzes U.S. government failures and structural problems in light of both institutions and incentives.

Peter Schuck analyzes U.S. government failures and structural problems in light of both institutions and incentives. Peter Schuck (2015)   Why

+See More