13 Jan 2015
Debate about the Fed normalization to rage on - SocGen
FXStreet (Bali) - Kit Juckes, FX Strategist at Societe Generale, notes that the debate about the Fed normalising monetary policy will rage on following soft US wave growth.
Key Quotes
"The debate about whether the Fed should continue normalising monetary policy in the face of solid employment (and GDP) growth, or focus on the lack of inflation and keep rates at zero for even longer, will rage on. That will fuel market volatility, and must at some point slow the dollar's advance."
"My view about they should do (stop the mis-allocation of capital that coes with zeror rates) is irrelevant. The next milestone in the debate comes with Friday's US CPI data, and the FOMC meeting on 28 January."
"In the meantime, the focus is on other policy-makers as the ECB meeting next week and the Greek election the following weekend will increasingly take centre stage.
Key Quotes
"The debate about whether the Fed should continue normalising monetary policy in the face of solid employment (and GDP) growth, or focus on the lack of inflation and keep rates at zero for even longer, will rage on. That will fuel market volatility, and must at some point slow the dollar's advance."
"My view about they should do (stop the mis-allocation of capital that coes with zeror rates) is irrelevant. The next milestone in the debate comes with Friday's US CPI data, and the FOMC meeting on 28 January."
"In the meantime, the focus is on other policy-makers as the ECB meeting next week and the Greek election the following weekend will increasingly take centre stage.