Q&A with Harker

  • Fed must be data dependant and not data point dependant
  • Q1 GDP will be weak
  • US continues to move ahead despite headwinds
  • At some point Fed will move away from zero
  • Another 25bp hike is still quite accommodative Fed policy
  • There's a very high bar before using negative rates in the US
  • Negative rates could be like pushing on a rope
  • There are limits to what monetary policy can do

There's probably few who think that Q1 GDP will be amazing but that's a big signal that it could be rubbish. The first Q1 release is 28th Feb

And it's over