Feel very good about where monetary policy isUS economy is in remarkably good shapeThe same institutional relationships between Fed and Treasury will continue under new adminPart of the Fed’s independence is that it’s self fundedEconomy in good shape and no reason that can’t continueOn a path to more-neutral rates over time, though downside risks are less than thought, Fed can afford to be catious in finding neutralGrowth is stronger than we thought in Sept and inflation has “come in a little higher”We can afford to be cautious in finding neutral
Quotable:
“The economy is strong, and it’s stronger than we thought it was going to be in September. The downside risks appear to be less in the labor market, growth is definitely stronger than we thought, and inflation is coming a little higher. So the good news is that we can afford to be a little more cautious as we try to find neutral.”
That’s led to some US dollar bids.
This article was written by Adam Button at www.forexlive.com.
