Federal Reserve Flexibility

The just-released minutes of the Federal Reserve’s July meeting are a Rorschach test. For those reluctant to taper, there’s a nod to the still struggling labor market and the very low inflation rate. Conversely, others felt that the recent rise in interest rates would exert little restraint and that easier lending standards would help juice the economy. Unless the August employment numbers are gangbusters, I expect no September tapering.

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