Federal Reserve Minutes released today show confidence in the US economy's improving growth. They also showed confidence that inflation would drift toward the Fed's target of 2%. As a result, they reinforce the view that the Federal Reserve will continue to raise interest rates as forecast, in order to tighten monetary conditions. There's one problem: interest income.
I think the interest income channel is an overlooked conduit of Fed monetary policy into the economy. And so, now...
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.