Nomura's Janjuah Says Fed Is Willing to Take Risks

The transcript discusses the Federal Reserve's reaction function post-election, focusing on fiscal policy changes and the impact of Trump's election. It highlights the shift in focus from wage inflation to asset prices and financial instability. The Fed's policy approach is now more data-driven, with an emphasis on financial stability. The impact of quantitative easing (QE) on market prices and corporate behavior is examined, noting the trend towards financial engineering over business investment. The Fed's willingness to take risks in the current political environment is also discussed, with an understanding that Congress typically acts in response to crises.

What is the Fed's current stance on economic data and its implications for policy?

What risks is the Fed willing to take in the current political environment?