Stabilization to Accommodation, Brainard's Policy Transition
cheapconvexity.substack.com
Sections - Jackson Hole, the Fed’s current duality. - Can we have a “beautiful” recovery or is fiscal in trouble? - What if we have the USDJPY question all wrong? - Lane's EURUSD comments were no faux pas. Overall: One of the more interesting things going into the September ECB/FOMC meetings and the updated staff macro forecasts is they both have very important questions to answer. The ECB has to answer the EURUSD question, does 1.20 really bother them? The Fed will have to show what they can do to further ease given the SEP will continue to show them coming up short of their dual mandate goals. We know what they will do (won't do) when things get better, what can they do if things get worse?
Stabilization to Accommodation, Brainard's Policy Transition
Stabilization to Accommodation, Brainard's…
Stabilization to Accommodation, Brainard's Policy Transition
Sections - Jackson Hole, the Fed’s current duality. - Can we have a “beautiful” recovery or is fiscal in trouble? - What if we have the USDJPY question all wrong? - Lane's EURUSD comments were no faux pas. Overall: One of the more interesting things going into the September ECB/FOMC meetings and the updated staff macro forecasts is they both have very important questions to answer. The ECB has to answer the EURUSD question, does 1.20 really bother them? The Fed will have to show what they can do to further ease given the SEP will continue to show them coming up short of their dual mandate goals. We know what they will do (won't do) when things get better, what can they do if things get worse?