Will the Fed Stay the Course Tomorrow?

The transcript discusses the potential continuation of quantitative easing (QE) and the possibility of tapering being put on hold. It highlights the market's reaction to economic policies and the Fed's role in managing expectations. Predictions about interest rate changes are explored, with some experts doubting any imminent increases. The global economic slowdown and its impact on the US economy are considered, along with the Fed's communication challenges. The dynamics between unemployment rates and inflation are analyzed, suggesting that low unemployment may not necessarily lead to high inflation.

Discuss the implications of a global economic slowdown on US monetary policy.

What challenges does the Fed face in communicating its policies?