- 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.
Complete Commentary/Printable Article