1 Big Idea: US monetary policy is no longer accommodative
The Federal Reserve releases one of its eight statements following a Federal Open Market Committee meeting. And the wide expectation is for no change in interest rates. But there are some hints to look for in monetary policy in the statement and subsequent press conference. The most important one is a signal that the Fed recognizes US monetary policy is no longer accommodative.
Pedro da Costa started this idea, writing:
Federal Reserve officials meeting this week are grappling with an important milestone in their effort to raise interest rates gradually without derailing the economy: When to tell the world that interest rates are no longer all that low — or more accurately, that monetary policy is no longer "loose."
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.