October 2015

What’s Inside

  • Citing the potential drag from global economic and financial developments, the Fed maintained its ZIRP (Zero Interest Rate Policy) at the FOMC meeting.
  • Whether or not the Fed decides to raise the fed funds target rate in 2015, forecasts for the pace of tightening and terminal levels suggest lower and slower tightening
  • Declining inflation and weak demand constrain what a neutral fed funds target rate may be.
  • In many ways, current market conditions suggest a tightening has already occurred, without any action from the Fed.

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