Summers got super close under Pres Obama , didn’t he?? The cost for Larry to justify the silver spoon deep up his ass, would have been costly for America and the globe/
A fairly substantial change in expectations in just 3.5 months. The main arguments for changing the rates are not in employment or inflation – neither needs “fixing” now or in the predictable future. The main argument to lower rates was that a lot of commercial RE loans could create instability in the financial sector when they reset to a substantially higher rate. The timeline and magnitude of the rate-resetting problem must be known to the Fed – so I have to conclude that they (and markets) think it will be manageable.
One would think Lawrence Summers had taken over the FED.
Summers got super close under Pres Obama , didn’t he?? The cost for Larry to justify the silver spoon deep up his ass, would have been costly for America and the globe/
A fairly substantial change in expectations in just 3.5 months. The main arguments for changing the rates are not in employment or inflation – neither needs “fixing” now or in the predictable future. The main argument to lower rates was that a lot of commercial RE loans could create instability in the financial sector when they reset to a substantially higher rate. The timeline and magnitude of the rate-resetting problem must be known to the Fed – so I have to conclude that they (and markets) think it will be manageable.