Nick Timiraos

speaker
252 appearances 6 recordings 1 series first heard Sep 2017 last heard Nov 2024

Nick Timiraos’s voice in public audio — every appearance, attributed to the second.

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The U.S.
economy is doing very well right now.
So
If you were just looking at domestic conditions, that would be a reason to continue raising rates this year and certainly into the early part of next year.
Where it gets more interesting is if you look at what's happening abroad right now.
So far, you've had emerging market volatility that's really only fouled things up for two countries, Turkey and Argentina.
And both of those countries have sort of idiosyncratic problems.
One concern, though, is that these sorts of strong dollar emerging market volatility episodes tend to start in the places that have the idiosyncrasies, but they don't always end there.
And so the Fed is going to keep a close eye on the possibility of emerging market contagion.
And related to that, you mentioned trade.
Do trade disputes, especially with China, which has strong ties, of course, to a lot of emerging markets,
Could all of that create a feedback loop that slows global growth, that hits the U.S.
stock market, and that forces the Fed to reassess?
That's the main wild card to the downside.
But for right now, most Fed officials are so focused on the fact that the U.S.
economy is doing so well that until the situation abroad gets a lot worse, it isn't going to really change their plans.
It's actually, the issue is that the word isn't all that significant anymore.
So for years, the Fed has held rates below the level that they expect would prevail in a kind of a normal economy, an economy at equilibrium.
And so they've described their policy stance as accommodative.
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