Monday, January 5, 2015

Policy Rates are staying low....

No need to repeat what has been stated on this website for the last few years, we remain in an environment bereft of the need of so-called "rate normalization". Any steps the US Federal Reserve takes in that policy direction will need to be reversed over the short term -- we know policy lags are long and variable but deficient effective demand cannot be easily turned around in an increasingly uneven recovery.