When the fog of war is finally lifted, we may find that economic growth remains weak because monetary policy turns out to be less accommodative than the Fed thought.
Quotes about accommodative (16 Quotes)
Inflation is still higher than nominal interest rates, and this is a clear sign that monetary conditions are highly accommodative in Malaysia and the need for interest rates to return to a neutral level.
With accommodative monetary policy, I think we are in the right place and moving in the right direction,
By maintaining an accommodative monetary policy, the CBC (Central Bank of China) has been raising interest rates at a very modest pace, indeed, the slowest among all Asian central banks.
The main point is that when they sit down, they will conclude that what we want to do is to continue to remove the accommodative policy,
Fukui is the big business candidate, a trusted hand that will continue to steer Japan on a deflationary course, ... We'll continue to have an accommodative BOJ, not a proactive BOJ.
Fed Chairman Alan Greenspan will have to act to boost confidence, ... Another cut at the Nov. 6 Fed policy meeting should not be ruled out, lowering the federal funds rate to 2.0 percent. Considering the weak economic outlook, the central bank will remain accommodative in the foreseeable future.
Monetary policy has to be somewhat accommodative, since a tightening in credit will likely cause liquidity difficulties in businesses that are suffering from overcapacity.
Under these conditions, policy-makers will want to maintain a continued period of very low interest rates and highly accommodative financial conditions to propel aggregate demand well above the upper end of reasonable estimates of potential growth,
The Fed is much more concerned that policy remains accommodative, which means that rate hikes will be measured going forward,
When monetary policy turns more accommodative, the more cyclical, leveraged and more-volatile asset classes generally outdistance defensive names,
Good news is that banks' lending attitude seems to be gradually becoming far more accommodative than in the previous recoveries.
There's nothing new from what we saw in the statement -- the downturn in growth is temporary, policy is still accommodative and they can remove stimulus at a measured pace.
The crux of the statement was unchanged (from the last meeting). They said that policy remains accommodative, but that the central bank will respond to changes as needed. That's been the mantra since the tightening period began last June.
Simply because the Fed is maintaining an accommodative monetary policy position doesn't mean they keep the fed funds rate at one percent indefinitely,
To do otherwise would run the risk that monetary policy would be too accommodative, pulling resources from the future in a way that would alter the trajectory for the growth of the capital stock, perhaps amplifying the imbalances, and compromising the price stability.