US Economics

US Economics

US Economics Weekly

14 July, 2017

What can past tightening cycles tell us about Fed policy?

Markets focused this week on supposedly dovish comments in Fed Chair Janet Yellen’s semi-annual testimony to Congress, but in truth she did little more than repeat the existing Fed line. As long as core inflation starts to rebound, we still expect a falling unemployment rate to convince Fed officials to continue hiking rates. Furthermore, recent history provides further reason to think that the Fed won’t wait for a more marked rebound in inflation before pressing ahead with further tightening.

Access this publication and more, take our free trial subscription today.

Free Trial

Already a subscriber? Simply log in to view this article.

Save to Library

New Book

Making a Success of Brexit
and Reforming the EU

by Roger Bootle

"Outstanding - engaging - absorbing"
Daily Telegraph

Buy now on Amazon

Get the App

The Capital Economics apps are a great way for clients to keep up to date with our latest research.

Capital Economics AppsFind out more
We use cookies to ensure you get the best experience on our website. Read our Cookie Policy for more information.