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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  1. Steve Foushee says:

    Elliot, I heard you speak at the Amelia Island GOA conference several months back. You laid out a very strong case that we did not have inflation. I see now you have revised that assessment to a “very low inflation rate”. Would you please expand on why you think we have very low inflation? Many others would disagree.

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