US Economy: Steady as she goes – ANZ

Research Team at ANZ notes that the Dudley and Brainard spoke from the FOMC yesterday and presented their views on the US economy.

Key Quotes

“Dudley expects the US expansion to continue in coming years, says inflation is simply not a problem (although the Fed thinks the economy is near maximum sustainable employment) and that the USD rise may exert some downward pressure on prices.”

“Brainard noted that the FOMC may have to tighten policy more aggressively if fiscal policy absorbs slack in the economy faster. She also noted that balance sheet reinvestment may end sooner.”