I feel the Fed is coming nearer to the end of our job as defined by those extraordinary circumstances, and anticipation of the normalization of monetary policy – interest rate policy – is appropriate. In that sense, I look for a new phase of policy to commence in 2015.
Leaders of the Federal Reserve – both Ben Bernanke and Janet Yellen – have repeatedly emphasized that the Fed’s monetary policy is not a panacea, not a cure-all for all the nation’s economic challenges. In my opinion, many underlying fundamentals of the economy remain to be adequately addressed.