Fed policy fine-tuning: Is there a case in the US for a lone rate? Recall what the Fed did in 1997
· livemint.com
Policymakers seem to think more rate hikes may be on the horizon after the US Federal Reserve raised its policy rate. But that’s not always the case. In 1997, Alan Greenspan’s Fed stopped after a solo hike. Could Kevin Warsh get lucky too?
In 1997 too, the rate-setting committee openly debated the implications of a surreptitiously rising neutral rate: “If monetary policy failed to recognize the ...