America’s stuttering recovery could put pressure on monetary policymakers to do even more to try and stimulate growth – either through a pause in tapering or through signals that will keep rates low for even longer. But there are increasing signs from the labour market that pressure on the Federal Reserve could come in the opposite direction; that, in fact, the economy is closer to its potential level than previously thought. If so, the time to begin tightening monetary policy might come significantly sooner than currently projected. Continue reading »
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