Fed Round Up
It was a packed week for Fed speak. Seven speeches left a lot to page through, but several consensus themes emerged among a usually divided Fed board. First, the US economy is at or near full employment, raising the specter of future increases in interest rates. Second, several secular trends are restraining potential growth, and solutions lay outside the Fed’s ability to influence. Lastly, the legislative branch of the US government should not impose a rules-based system on monetary policy and should instead spend their time addressing structural issues in the economy.