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10 Feb 2016
Market off the mark about the Fed - Scotiabank
Analysts at Scotiabank explained that financial market volatility and credit stress is something policy makers will have to consider.
Key Quotes:
"But the US economy is tracking decent growth trends (2.5% in Q1, according to the Atlanta Fed’s GDPNow model) and recent data and surveys have indicated a further tightening in the US labour market."
"We think the idea that the Fed will have to somehow concede that it has made a policy misstep is well wide of the mark."
"Policy makers should not feel especially compromised by market-driven events at this point as they may prove transitory."
Key Quotes:
"But the US economy is tracking decent growth trends (2.5% in Q1, according to the Atlanta Fed’s GDPNow model) and recent data and surveys have indicated a further tightening in the US labour market."
"We think the idea that the Fed will have to somehow concede that it has made a policy misstep is well wide of the mark."
"Policy makers should not feel especially compromised by market-driven events at this point as they may prove transitory."