Link for the curious: http://www.bloomberg.com/news/articles/2016-03-07/brainard-urges-patience-at-fed-as-fischer-sees-inflation-signs
Upon noticing economic volatility abroad, US investors and policy-makers were quick to begin worrying about possible effects domestically. As the US economy continues to expand, Federal Reserve Governor Lael Brainard urges for "careful adjustments to the policy rate to preserve the expansion."
Brainard still believes that employment will continue to strengthen as well as inflation, however he reminds us to be cautious due to the decelerating demand from large foreign nations, such as China. The Fed does meet in a little over one week, but it is not expected for them to raise interest rates at that time. Consumer spending is rising and the hope is that the economic growth in this country will take hold and start to return to normal pre-recession numbers. There is a possible downside risk of course, to which Brainard said, "“We should not take the strength in the U.S. labor market and consumption for granted, sources of robust demand around the globe are few, and sources of weakness relatively greater.”
Do you think we should be worried about foreign volatility? Are we close to a "breaking point" where we explode economically? What types of policies should the Fed be looking at for such a strange time?
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