Fed Policy Is Significantly Behind The Curve
​Fed Chair Yellen delivered a speech on January 19 titled The Economic Outlook and the Conduct of Monetary Policy in which she said “a natural question is whether monetary policy has fallen behind the curve. The short answer, I believe, is ‘no.’†Yellen’s assertion that the Fed is not behind the curve has since been echoed by other Fed officials—for example, Cleveland Fed President Mester said twice this month “I don’t believe we are behind the curve yet,†while Fed Governor Powell said this week that he has not seen “data suggesting that we are behind the curve.†These claims are likely the basis for arguments for why the FOMC need not be in a hurry to nudge rates higher at their next policy meeting. However, in our view, the economic data unmistakably demonstrate that the Fed is behind the curve on monetary policy.
RDQ Economics provides global macroeconomic consulting services with an emphasis on U.S. economic fundamentals and monetary policy.
Our views are driven by consistent application of classical economic and monetary principles and has generated superior anticipation of changes in the stance of monetary policy and of movements in economic growth and inflation.
The founders of RDQ Economics, John Ryding and Conrad DeQuadros, have a combined experience of 26 years on Wall Street, 12 years of experience in central banking at the Federal Reserve and the Bank of England and nine years in the independent research space. John and Conrad have worked closely with fixed income, foreign exchange, and equity traders and portfolio managers, which has enabled their analysis and advice to be tailored to a clientele that is focused on trading and investment decisions.
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