Perspectives Blog

U.S. rates – Headwinds

Zach Pandl, Portfolio Manager and Strategist | March 17, 2014

…policy may not be exceptionally easy today (though we will take up that issue below). Rather, the Fed’s stance could be thought of as the mirror image of the constraints on growth from other sources: tax increases, underwater mortgages, impaired securitization markets, etc. To close the output gap, Fed policymakers need to offset these headwinds complicating their job. For economists the term “headwinds” is just a stand-in for a familiar concept:…