“The projected combination of a gradual rise in the nominal federal funds rate coupled with further progress on both legs of the dual mandate is consistent with an implicit assessment by the Committee that the equilibrium real federal funds rate–one measure of the economy’s underlying strength–is rising only slowly over time.”
“In current circumstances, raising the funds rate target a notch or two is less like taking away the punch bowl and more like just slowing down the refills,” he said. “We will still be spiking the punch–just not quite as rapidly as we have been.”
Outside the “bar”, Kevin pickets:
“Now, I would say the markets are exhausted. They’re exhausted that the Fed has decided there’s a new set of benchmarks,” . “Before it was forward guidance. Now it’s, ‘Just kidding about forward guidance. Citing the sliding unemployment threshold for considering an interest rate hike, he said it’s now 5.5 percent or even 5 percent, down from 6.5 percent not too long ago.