The share of economists predicting the Federal Reserve will reduce bond buying in December doubled after a government report showed back-to-back monthly payroll gains of 200,000 or more for the first time in almost a year.
Federal Reserve Chairman Ben S. Bernanke’s pledge to keep rates exceptionally low through late 2014 is a mistake with the U.S. economy gaining steam, said John Ryding, chief economist and co-founder of RDQ Economics.
The Federal Reserve may let inflation exceed 3 percent as it keeps the main interest rate low to boost growth, said John Ryding, a former Fed researcher who is chief economist at RDQ Economics LLC in New York.
Since tomorrow's monthly unemployment report is postponed, today we focus on what we do know from recent government data. Citigroup aggregates all economic releases in its cumulative Economic Surprise Index, where better than expected data adds to the index and worse data subtracts. The most recent reading is 51.7, which is near the top of the range for the past year.
The Federal Reserve-led global effort to ease borrowing costs for financial firms shows both the central bank’s power to jolt markets -- and the limits of its ability to alleviate the European debt crisis.
Further easing of monetary policy by the Federal Reserve would hinder U.S. job growth because it would push prices higher and ultimately hurt demand, said John Ryding , chief economist at RDQ Economics LLC in New York.