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6 May 2016
Fed Bullard: Undecided on the path of US rates - ANZ
Research Team at ANZ, notes that the Fed Bullard (2016 voter) was undecided on the path of US rates, noting it was difficult to conclude whether rate predictions by the Fed or by the markets were more accurate.
Key Quotes
“Financial stress has fallen and the effects of the stronger dollar appeared to have waned. Weak Q1 GDP contrasted with the US labor market “at or possibly well beyond reasonable conceptions of full employment”, with the recent upward trend in inflation noted. “Still, combining actual data from the second half of 2015, the first quarter of 2016, and tracking estimates for the current quarter, the suggestion is that the US is growing below a trend pace of 2 percent”.”
Key Quotes
“Financial stress has fallen and the effects of the stronger dollar appeared to have waned. Weak Q1 GDP contrasted with the US labor market “at or possibly well beyond reasonable conceptions of full employment”, with the recent upward trend in inflation noted. “Still, combining actual data from the second half of 2015, the first quarter of 2016, and tracking estimates for the current quarter, the suggestion is that the US is growing below a trend pace of 2 percent”.”