The Fed became much more dovish at its recent meeting, lowering its prediction for the Fed Funds rate at the end of the year. Yet the Fed is still predicting that ‘excess’ unemployment will fall further, which should make it more hawkish. Is this divergence because of concerns that the unemployment gap is actually larger than it looks, or concerns about lags in the relationship between the unemployment gap and inflation? Or is it a policy error?
Om dit artikel te lezen heeft u een abonnement op Investment Officer nodig. Heeft u nog geen abonnement, klik op "Abonneren" voor de verschillende abonnementsregelingen.
