Author Archive for: Tom 2

Whether the paper from the San Francisco Fed has any effect on Fed policy remains to be seen. But I think the conclusion that “forward guidance” is a more-effective policy tool than QE is incorrect, and I’m starting to get the impression that the academics at the Fed, and other central banks, are overvaluing “forward guidance.”

This week is a reverse of last week: Not a lot of international data, but an increase in domestic reports, although most of the releases are “second-tier” and are unlikely to have an effect on Fed policy going forward.