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Fed seeks cover in ‘natural’ interest rate
U.S. Fed Chair Janet Yellen has many reasons for wanting to avoid scrutiny while she attempts to execute a very tricky soft landing for the economy (source: dpa)
General info
What's inside
- The U.S. economy is in good shape and markets expect monetary tightening
- Under such conditions, the Fed’s focus on the gap between natural and market interest rates is puzzling
- One purpose may be to deflect pressure from the Trump administration
- The Fed may be signaling that it will not support Keynesian policies or a cheap dollar
Who will benefit?
- Report is targeted to the decision makers in cross country manufacturing – suppliers, manufacturers, logistics.
- Also considered useful for the administrative university facilities, to better understand the possible effects of current decisions.
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