Recent financial market volatility won’t prevent the Fed from announcing an end to its asset purchases this week, at the conclusion of the two-day FOMC meeting on Wednesday. The bottom line is that...

The tapering of the Fed's monthly asset purchases might finally be having a knock-on impact on the growth rates of the broader monetary aggregates. Our estimate of the broadest M3 measure shows that...

Since the recent fall in US inflation expectations is solely being driven by the decline in oil prices, it won’t prevent the Fed from ending QE3 or raising interest rates next year.

The recent market moves could help the Fed to hit the employment part of its dual mandate but will take it further away from its inflation target. While we don’t think this necessarily means that a...