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Deutsche considers.
Fed communications last week remained hawkish, with more officials signaling that the balance of risks has shifted away from an easing bias and toward a more symmetric reaction function.
The Minutes to the April FOMC meeting highlighted “a majority of” participants willing to contemplate tightening policy if inflation were to run persistently above target, while “many” would have dropped the easing bias from the meeting statement.
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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific's leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.