Archive for the ‘Financial Markets’ Category

Josh Bivens for the Win: The Fed Interest Rate Liftoff is the New Deficit Reduction

January 14th, 2015

Orange may be the new black, but in my world raising the federal funds rate is the new deficit reduction. Let me explain. I keep bumping into arguments about why, despite pressures from wages or prices, either in real life or in expectations, the Fed should pre-emptively raise the interest rate it controls in order… Read more

A quick note on the Fed meeting and the need for “patience” for a “considerable time.”

December 17th, 2014

As the Federal Reserve Open Market Committee meets today to decide their path for monetary policy, there’s great focus on whether they’ll change a few key words of their guidance language. Specifically, will they drop “considerable time” from the sentence wherein the telegraph their thinking about how long they’ll hold interest rates at around zero? EG,… Read more