It is failing to recognize its transmission from the rest of the world and it is overestimating the
degree of monetary accommodation now present and likely to be present in the future by overestimating the neutral rate.
A more likely catalyst would simply involve tighter financial conditions, potentially a result of the simultaneous withdrawal
of monetary accommodation by the Fed and the European Central Bank (ECB).
Esther L. George, who was concerned that the continued high level
of monetary accommodation increased the risks of future economic and financial imbalances and, over time, could cause an increase in long - term inflation expectations.
As markets shift away from the recovery
era of monetary accommodation amid synchronized global growth, some investors may be wondering where potential opportunities can be found.
Voting against the action was Esther L. George, who was concerned that the continued high level
of monetary accommodation increased the risks of future economic and financial imbalances and, over time, could cause an increase in long - term inflation expectations.
In light of the improving economy, Mr. Hoenig was concerned that a continued high
level of monetary accommodation would increase the risks of future economic and financial imbalances and, over time, would cause an increase in long - term inflation expectations that could destabilize the economy.
The FOMC can best facilitate its pursuit of both mandates by forgoing any near - term reduction in the level
of monetary accommodation.
In contrast, most other countries can look forward to at least another year, maybe longer,
of monetary accommodation, good news for international stocks.
In contrast, most other countries can look forward to at least another year, maybe longer,
of monetary accommodation, good news for international stocks.
However, as the BoC has increasingly pushed the boundary
of monetary accommodation, correlations have fallen.
«Looking ahead, there was a benefit to clear and forward - looking communication by the Governing Council, while some flexibility was required in order to appropriately prepare and calibrate the necessary degree
of monetary accommodation.