• The reason why tonight’s FOMC meeting is closely watched is twofold. It’s not often that plain vanilla monetary policy is just as important as the nuts in bolts of monetary policy. Regarding the former: we’re talking about the outlook for QE. Regarding the latter, the Fed has some decisions to make on regulatory easing and on the (real or perceived) problem of too low overnight rates in the US. A word of warning. Our discussion of ‘general’ monetary policy is a straightforward affair. The discussion about the technical is unfortunately quite complicated.

 

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