From former Minneapolis Fed President Narayana Kocherlakota: Monetary Policy is Not About Interest Rates
Both the inflation situation and (perhaps more arguably) the employment situation seem to call for more monetary stimulus, not less. But the FOMC is set on gradual normalization of interest rates. This framework seems grounded in a troubling aversion to both low interest rates and interest rate volatility.
If Kocherlakota was on the FOMC, he would have dissented.
Thursday:
• At 8:30 AM ET, the initial weekly unemployment claims report will be released. The consensus is for 285 thousand initial claims, down from 293 thousand the previous week.
• Also at 8:30 AM, Durable Goods Orders for December from the Census Bureau. The consensus is for a 0.2% increase in durable goods orders.
• At 10:00 AM, Pending Home Sales Index for December. The consensus is for a 0.8% increase in the index.
• Also at 10:00 AM, the Q4 Housing Vacancies and Homeownership from the Census Bureau.
• At 11:00 AM, the Kansas City Fed manufacturing survey for January.