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Five Macroeconomic Questions for 2017
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January 12, 2017
Before the Forecasters Club of New York, President James
Bullard posed and discussed ve key questions: 1) Will the
current period of low real (i.e., in ation-adjusted) interest
rates on short-term safe assets give way to a period of
high real interest rates this year? (2) Will new policies from
President-elect Donald Trump’s administration drive the
real GDP growth rate higher? (3) Is in ation set to rise? (4)
Should the federal funds rate move meaningfully higher
this year? and (5) Could the Fed’s balance sheet now be
allowed to shrink?
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