Swimming Against the Stream

Despite what William Poole says, I think there is little life left in the Fed 'measured rate rise' policy. One of the consequences of growing globalisation (read China and India) and the CA deficit is that you loose the ability to upwardly control your own domestic prices and set your own interest rates. The US CPI is being determined in China, and the Federal FOMC rate is being set by ECB president Jean-Claude Trichet.