Updates:
Fed Satisfies Inflation Hawks Without Lifting a
Finger
https://www.bloomberg.com/opinion/articles/2021-06-16/fed-decision-central-bank-satisfies-inflation-hawks-without-lifting-a-finger
https://www.bloomberg.com/opinion/articles/2021-06-16/fed-decision-central-bank-satisfies-inflation-hawks-without-lifting-a-finger
The Economic Gauges Are Going Nuts. Jerome Powell
Is Taking a Longer View.
Federal Reserve Now Projects Rate Increases
in 2023 as Economy Heals
Fed Sees Two Rate Hikes by End of 2023, Inches Towards Taper
https://www.bloomberg.com/news/articles/2021-06-16/fed-holds-rates-at-zero-projects-two-hikes-by-the-end-of-2023
The central bank’s outcome-based approach exacerbates
economic and financial risks and needs to be addressed now.
https://www.bloomberg.com/opinion/articles/2021-06-15/fed-meeting-central-bank-needs-to-take-action-despite-its-framework
El-Erian notes:
“In such an environment, the world’s most powerful central bank should ease its historically astounding policy stimulus. This would start immediately with a small taper of the $120 billion of monthly asset purchases — a prelude to their eventual elimination over the next 12 months— and the subsequent start of a slow lifting of interest rates from near zero. The argument for launching this policy adjustment immediately is reinforced by how record loose financial conditions have encouraged and enabled excessive and, in some instances, irresponsible risk-taking”
Related:
https://thehill.com/opinion/finance/554058-should-the-fed-be-less-complacent-about-inflation-risks
https://www.bloomberg.com/opinion/articles/2021-06-15/fed-meeting-central-bank-needs-to-take-action-despite-its-framework
El-Erian notes:
“In such an environment, the world’s most powerful central bank should ease its historically astounding policy stimulus. This would start immediately with a small taper of the $120 billion of monthly asset purchases — a prelude to their eventual elimination over the next 12 months— and the subsequent start of a slow lifting of interest rates from near zero. The argument for launching this policy adjustment immediately is reinforced by how record loose financial conditions have encouraged and enabled excessive and, in some instances, irresponsible risk-taking”
https://thehill.com/opinion/finance/554058-should-the-fed-be-less-complacent-about-inflation-risks