Not exact matches
The FOMC's
policy normalization principles and plans make the temporary nature of the ON RRP clear
by stating that it will be discontinued when it is no longer needed to help control the federal funds rate.26 This intention was noted again in the minutes to the January FOMC meeting.
The US Dollar was boosted overnight
by prospects of Fed continuing the path of gradual monetary
policy normalization in light of inflation in the US approaching the targeted levels but retreated somewhat during the European trading on Thursday on profit - taking.
Policy rate
normalization should not only be borne well
by the economy, but it may actually hold a positive impact.
There are objective reasons to be optimistic, including ongoing labor market improvements — underscored
by falling unemployment and underemployment rates, as well as solid job growth — combined with the Federal Reserve's expectations that conditions will permit further interest rate hikes this year as it continues to move toward
policy «
normalization.»
«This should cause markets to rethink the speed of
policy normalization pursued
by the Federal Reserve,» Stopford says.
A rising rate on the 10 - year partly reflects the desire to make progress on monetary
policy normalization, which has been impeded
by a series of unrelated surprises over the course of the year.
We think increasing sales of Treasuries into the market
by the Fed and the Treasury will stress the market and force the Fed to reverse the «
normalization» of its
policies.
Some policymakers responded to the global uncertainty and downside risks to inflation
by revising down their economic projections, but a number of market participants went a step further to call the central bank's decision to begin
policy normalization in December 2015 a «
policy mistake.»
Some would argue that
by acting cautiously on balance sheet
normalization (without actively countering impacts of ECB
policy measures), Fed policymakers have partially ceded control of financial conditions to foreign monetary authorities, but the same can be said about other central banks as well, for long - term rates are correlated among advanced economies:
As the Fed embarks on an unprecedented
policy normalization, we should be mindful of the magnitude of the imbalances and dislocations created
by several years of zero interest rates and quantitative easing.
After a long stretch characterized
by ultra-low interest rates, slow growth, minimal inflation, cheap oil, and little
policy progress due to a conflicted Congress, we are now doing a dramatic 180 degree turn to a lower tax, less regulation, pro-growth environment, with higher rates and higher inflation — a
normalization of sorts.
The Federal Reserve (Fed) last week proceeded with
policy normalization as we expected, raising rates
by 0.25 %.
New York Fed President William Dudley recently suggested that balance sheet
normalization could stand as a substitute for
policy rate
normalization, a view that if adopted
by the Federal Open Market Committee could alter the market - expected trajectory of rate
normalization.
«We expect the first rate hike of the year at the March Fed meeting, a move fully priced in
by the market, with continued gradual monetary
policy normalization under the new leadership of Fed Chair Jerome Powell,» Duncan says.