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Friday, November 03, 2017

Economy Not Likely Easy For Next Fed Chair

Tim Duy:

Economy Not Likely Easy For Next Fed Chair, by Tim Duy: The U.S. appears set to enter a more risky phase of the business cycle as the Federal Reserve attempts to glide the economy into a so-called soft-landing. For President Donald Trump’s likely nominee as chair, Jerome Powell, this means tightening policy enough to settle the economy into full employment, but not so much that it trips into recession.
Navigating this transition will be challenging for investors and the Fed alike. Market participants should be wary of assuming that a slowing economy means a recession is near. At the same time, central bankers need to be wary that they don’t slow the economy too much and set the stage for the next recession. Altogether, this means the relative calm of the past year is likely to end soon. ...[Continued at Bloomberg]...

    Posted by on Friday, November 3, 2017 at 10:01 AM in Economics, Monetary Policy | Permalink  Comments (2)


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