PIMCO Advisor Says Data Dependency is Not Monetary Policy

The Federal Open Market Committee will announce Thursday whether it will raise its benchmark fed funds rate for the first time in more than nine years. Fed Chair Janet Yellen has said the committee’s decision remains dependent on how economic data impact the central bank’s employment and inflation targets.

“I think the real issue here is Janet Yellen likes to say she’s data dependent, but data dependence is not a monetary policy,” Clarida told CNBC’s “Squawk Box.”

“You get fluctuations in foreign equities or credit spreads widen here, it’s very hard for the markets to sense what is the reaction function of the Fed, what will be that path?”

via CNBC

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza