Even if, as is likely, the Fed continues its
current path of raising rates and letting its bond
portfolio gradually run off in 2018, the meeting
minutes could raise more questions about policy
over the intermediate term.
Marvin Goodfriend,for example, is reportedly not a proponent of the
bond-buying program. He could push for a faster
runof. Other appointees could favor a more
mechanical policymaking approach such as the
Taylor Rule.
The Fed is also starting to consider whether
to change its current policy approach of targeting
a two per cent infation rate with a higher rate, or
setting another policy target such as nominal
economic output growth. While this is unlikely to
change in the coming year, a contentious debate
could be another source of uncertainty and
volatility for markets.
EU Forecast
euf:b18:119/nws-01