Goldman Wonders If Fed Will Allow High Pressure Economy?

With a US Federal Reserve rate generally received an initial yawn from the stock market Wednesday, there is a discussion regarding the US Federal Reserve potentially allowing the economy to “run hot,” moving towards a high pressure economy with the inflation target near 3%. As a December 7 Goldman Sachs “Top of Mind” global macro research report points out, we are in a reflation market environment, the issue is to what degree does the trend play out? A big question regarding Fed Chair Janet Yellen being on board was made clearer Wednesday.

US interest rates rocket higher after FOMC announcement

While stocks were little impacted by the initial announcement...