Tuesday, September 8, 2015

RHB | US | Debating and Rationalizing Liftoff

Economic Research
         08 Sept  2015
US

Economic Highlights



 
The Federal Open Market Committee (FOMC) will be taking into account a “wide range of information”--essentially assessing the relative importance of macroeconomic, financial market and risk management considerations in the liftoff equation--in determining whether it is appropriate to raise rates by 25bps at the upcoming meeting on September 16-17. Ultimately, in view of the unsettled situation, a fair amount of subjective, but logical, judgment could drive the FOMC’s decision. Perhaps, one simple approach to rationalize the complex deliberation process of the FOMC is to view the eventual decision on liftoff as an attempt to pursue a “maximin” strategy. To wit, given the various worst-case policy alternatives, choose the policy with the least costly or negative outcome.


Economist:  Thomas Lam  | +65 6533 0389

To access our recent reports please click on the links below:
20 Aug 2015: Still Dangling…
30 July 2015: Hike-On, Hike-Off

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.

Related Posts with Thumbnails