Experience Stern | News & Events

Excerpt from Bloomberg -- "One of the dilemmas that the Fed is facing right now is that there is a bit of an asymmetry. Suppose that they move too fast, too soon. Then the economy could be stalling, maybe because of external shock... and then going back to conventional monetary policy is a mistake. Suppose they were a bit more cautious and you start later and more slowly. If the economy is too strong and inflation picks up, you ... can tighten a little bit faster. So this asymmetry between the risk of moving too soon or too late suggests that, actually, you want to be cautious."

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