James Bullard, president of the St. Louis Fed, says there are five questions for monetary policy:
The five questions
- What are the chances of a hard landing in China?
- Have U.S. financial market stress indicators worsened substantially?
- Has the U.S. labor market returned to normal?
- What will the headline inflation rate be once the effects of the oil price shock dissipate?
- Will the U.S. dollar continue to gain value against rival currencies?
I would add:
- Will wage gains translate into inflation (or something along those lines)?