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Jannat Ara
Jul 30, 2022
In General Discussion
After the Federal Open Market Committee held its monetary policy meeting in July, the minutes of the meeting did not indicate the direction of short-term interest rate policy, and now several members are repeating the same old rhetoric: Interest.” If the Fed repeatedly focuses on the slight fluctuations in economic data, it may fail to take into account the overall environment and further deepen the uncertainty. The Fed should abandon "short-sightedness" and take a longer and more comprehensive view. To raise or not to raise interest rates The Federal Reserve Bank of Kansas City will host its annual economic symposium next week in Jackson Hole, Wyoming. Resilient Monetary Policy Frameworks for the Future). The near-term direction of the Fed's monetary policy is likely to be seen in the opening remarks of Chairman Janet Yellen. It is difficult to predict how Yellen and other Fed members will comment on monetary policy, because their remarks often depend on the latest economic data. The rising arrow is on the string... For example. Yellen responded to a question in a May 27 speech at the Radcliffe Institute for Advanced Study in Harvard: "I've said in the past that I think the Fed will need to gradually And it is cautious to raise the overnight call rate, and it is possible to raise interest rates in the next few months.” Her remarks followed similar rhetoric from other senior Fed officials, including Fed governors and Reserve Bank presidents, who pointed to current economic conditions as conditions number list for raising interest rates. However, after a few weeks, the Fed turned dovish at its June 14-15 policy meeting and decided not to raise interest rates for the time being, citing poor May employment report data and concerns about the momentum of the labor market. ... but decided not to raise interest rates In a press conference after the June meeting, Yellen said: "...the job market is showing signs of slowing, and we have to make sure that the underlying momentum in economic growth is not lost. As I said before, we will carefully evaluate the data on the labor market, Ensuring that the number of employees maintain a certain growth rate will drive the labor market to recover further. We will also pay attention to the expenditure data to ensure that the growth rate is in line with our expectations.” Since the June policy meeting, employment reports for June and July have been released one after another, of which June The number of new jobs was as high as 292,000, and 255,000 were added in July. The performance in a single month was excellent, and the combined performance in the two months was even stronger. It can be seen that doubts about the momentum of the labor market are obviously overreactions. Will June-July job creation be enough for the Fed to change its view but in the June press conference, Yellen said: "For example, there may be positive data in July, which gives us reason to believe that the economy is on the right track, the data in May is just abnormal, and other doubts are also Fading.” The June-July jobs report is clearly strong evidence that the May data was an anomaly and that Brexit concerns were superfluous.
The 'short-sighted' problem of the Fed's decision-making process content media
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