It will be interesting to see how the Fed meeting goes this week. I’m with the market monetarists that targeting NGDP growth would be the best method for communicating monetary policy, and I think using short term interest rates to target inflation is a horrible system.
Thanks for being a voice of reason in these idiotic times. If I were on the Fed I would be recommending some modest rate cuts through the summer. At the very least, it would signal that inflation is under control and might give some confidence to people who are sitting on the sidelines of the housing market. My inexpert risk map includes the following--which is biased towards conditions in the Boston Metro area:
-Commercial Office Space--I pity the fools who are holding onto Class B space
-Lab Space--not a bubble, but in the process of a correction (recent Boston Globe article on this)
-House Flippers/small scale developers--the party is probably over, but it's largely offset by continued strength in the large scale multi-unit developers
-Food & Energy costs--because that makes people grumpy and they think that the Orange Man will save us with an expanded trade war and immigration crackdown
Thanks for being a voice of reason in these idiotic times. If I were on the Fed I would be recommending some modest rate cuts through the summer. At the very least, it would signal that inflation is under control and might give some confidence to people who are sitting on the sidelines of the housing market. My inexpert risk map includes the following--which is biased towards conditions in the Boston Metro area:
-Commercial Office Space--I pity the fools who are holding onto Class B space
-Lab Space--not a bubble, but in the process of a correction (recent Boston Globe article on this)
-House Flippers/small scale developers--the party is probably over, but it's largely offset by continued strength in the large scale multi-unit developers
-Food & Energy costs--because that makes people grumpy and they think that the Orange Man will save us with an expanded trade war and immigration crackdown
We live in boring interesting times.
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