WHAT IS 'NORMAL' MONETARY POLICY IN THE NEW TRUMP ERA?

摘要

U.S. monetary policy morphed dramatically to a "new normal" of persistently depressed interest rates since the 2008 credit crisis, but with the advent of a dynamic new administration, the Federal Reserve may have to move back toward old normal. In raising the federal funds rate at year-end, the Fed reiterated further hikes will be "only gradual," but the meaning of gradual could evolve yet again. If President Donald Trump and the Republican Congress reduce tax and regulatory burdens as promised and achieve faster GDP growth, Fed policymakers will need to readjust their thinking on interest rates.