The Federal Reserve meets
The best of all worlds
Dec 17th 2014
WHAT could be better than an economy converging rapidly on full employment? A central bank in no mood to get in the way. That is the happy combination America now enjoys, and it explains the stock market's euphoric reaction to today's meeting of the Federal Reserve.
In the statement released after its meeting, the Fed hailed "solid job gains" and diminishing slack in the labour market. Projections of its officials put unemployment at or below its long-run natural rate a year from now. This is not an economy in need of zero interest rates. And, as officials had broadly hinted beforehand, they did start to prepare the way for rates to rise from zero where they have been since 2008. The statement no longer contained the two-year old pledge to keep rates near zero for a considerable time.
rest of article with more details is worth reading here
http://www.economist.com/blogs/freeexchange/2014/12/federal-reserve-meets
The best of all worlds
Dec 17th 2014
WHAT could be better than an economy converging rapidly on full employment? A central bank in no mood to get in the way. That is the happy combination America now enjoys, and it explains the stock market's euphoric reaction to today's meeting of the Federal Reserve.
In the statement released after its meeting, the Fed hailed "solid job gains" and diminishing slack in the labour market. Projections of its officials put unemployment at or below its long-run natural rate a year from now. This is not an economy in need of zero interest rates. And, as officials had broadly hinted beforehand, they did start to prepare the way for rates to rise from zero where they have been since 2008. The statement no longer contained the two-year old pledge to keep rates near zero for a considerable time.
rest of article with more details is worth reading here
http://www.economist.com/blogs/freeexchange/2014/12/federal-reserve-meets
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