I Think Paul Krugman Is Wrong on "Class and Monetary Policy"
Morning Must-Read: Robert Waldmann: Flows From Unemployment to Employment & Extended Unemployment Insurance

Morning Must-Read: Tim Duy: QEInfinity Not

Tim Duy: QEInfinity Not: "My own view is:

...1. The existing mix of data and forecasts suggest the first rate hike in the second quarter of 2015 with a gradual increase in rates thereafter. This is my baseline. 2. If unemployment continues to drop at the same rate as recent months, bring forward the rate hike to the first quarter but continue to assume a gradual increase. 3. If core-PCE inflation exceeds 2.25% and wage growth is accelerating , expect first quarter liftoff and a steeper path of rate hikes. Obviously, the data could suggest a delay in the first rate hike, but I do not believe the risks are weighted in that direction. I think the risks are weighted toward tighter than expected policy. Bottom Line: Fairly straightforward minutes. Policy is data dependent. The Fed, like all of us, are simply waiting to see how that data evolves.

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