The article briefly summarized the expectations of the Fed addressing the rising inflation and employment issues. The Fed expects to keep increasing interest rates to realize the expansionary monetary policy to achieve the target goal of economic growth. The Fed chairman said it was too early to make predictions and outlook on imposing tariffs for the trade disputes, it might be an indicator that the imposing tariffs will not be implementable for the trade war.
https://www.bloomberg.com/news/articles/2018-04-06/powell-backs-gradual-hikes-as-tame-wage-gains-have-room-to-run
2 comments:
something I find interesting is that the chairman avoided talking about China and how the tariffs are going to affect the US economy. This might be a way in which he is staying neutral in regard to politics, which could make his job of running the fed easier. But it would be also really interesting to see what are the decisions that he is going to take in the fed to control the economy from the consequences that the tariffs and the imminent trade war are going to have in the economy. We will see if in the future he keeps avoiding this questions, or if he starts sharing what the fed is planning on doing.
I am curious to know what the interest rates are likely to have an effect on the US economy. With so many uncertainties surrounding the Trump administration in terms of foreign policy and economic policy, the future seems highly unpredictable. It would be interesting to see how other factors play into the decisions of the FED and future economic growth prospects.
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