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MNI INTERVIEW: Fed Cuts To Continue But Neutral Not Far-Tracy

Former senior Fed economist Joseph Tracy discusses the economic outlook.

MNI (WASHINGTON) - The Federal Reserve is likely to look past economic policy changes from the incoming administration of President-Elect Donald Trump next year and keep cutting interest rates toward a neutral level that has probably risen, former senior Fed economist Joseph Tracy told MNI. 

While an expansionary fiscal stance might generally call for less monetary easing, it won't be easy to calibrate the likely effect of significant tariffs and changes to immigration policy that could take priority for the administration and Congress, said Tracy, former senior adviser to Dallas Fed President Robert Kaplan and ex-senior economist at the New York Fed.

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MNI (WASHINGTON) - The Federal Reserve is likely to look past economic policy changes from the incoming administration of President-Elect Donald Trump next year and keep cutting interest rates toward a neutral level that has probably risen, former senior Fed economist Joseph Tracy told MNI. 

While an expansionary fiscal stance might generally call for less monetary easing, it won't be easy to calibrate the likely effect of significant tariffs and changes to immigration policy that could take priority for the administration and Congress, said Tracy, former senior adviser to Dallas Fed President Robert Kaplan and ex-senior economist at the New York Fed.

Keep reading...Show less