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394 Sentences With "stimulative"

How to use stimulative in a sentence? Find typical usage patterns (collocations)/phrases/context for "stimulative" and check conjugation/comparative form for "stimulative". Mastering all the usages of "stimulative" from sentence examples published by news publications.

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Five said it would be stimulative and none said very stimulative.
Fiscal policy is likely to become more stimulative, Dudley said.
"Rates this low will eventually be very stimulative," Desai said.
" Powell also acknowledged that "fiscal policy is becoming more stimulative.
The break is consistent with the government's modest stimulative measures.
The Fed's stimulative tools operate through Wall Street, exacerbating those problems.
There are things going on with fiscal policy that are stimulative.
China has also implemented stimulative measures to mitigate slowing economic growth.
The Copom reiterates that economic conditions prescribe stimulative monetary policy, i.e.
"We don't know how stimulative it will actually be," said Battle.
Both measures will have stimulative impact but also carry potential harm.
Economists are divided over the stimulative effects of negative interest rates.
In theory, this should be stimulative for stocks and bond prices.
STEVE LIESMAN: President Mester, do you think that policy is currently stimulative?
"This is nothing but stimulative and positive for the economy," he said.
This would be the single-most stimulative program for reigniting economic growth.
And fiscal policy has become stimulative as well given the tax bill.
And fiscal policy has become stimulative, as well, given the tax bill.
"Fiscal policy, which changes taxes and spending in politically motivated ways, can also be changed to be more stimulative or less stimulative in response to what is needed but that happens in lagging and highly inefficient ways," he added.
In addition, it is increasing stimulative asset purchases, known as quantitative easing (QE).
But they resulted from a historic financial crisis, a recession and stimulative spending.
However, investors around the world cheered the prospect of more stimulative monetary policy.
In addition, Mr Trump's policy platform could be stimulative in the medium run.
Despite the ongoing geopolitical conflict, Yardeni said activity surrounding oil could be stimulative.
Such tools also would blunt the stimulative effect of lower rates, he added.
A. All else equal, more stimulative policies should boost growth and stabilize inflation.
"We know on the corporate side those things are stimulative," Perdue said. Sen.
The benefits would arrive gradually across paychecks instead of in one stimulative burst.
However, Cohn has maintained the White House is still focused on stimulative policies.
The ECB held firm last week but signaled stimulative rate cuts for the future.
LIKE I SAID, IT'S NOT ONLY THE DIFFERENCE BETWEEN HIS PLATFORM IS HIGHLY STIMULATIVE.
Stocks have rallied in the last few weeks on anticipation of stimulative tax reform.
Neutral is the level that would no longer be stimulative or slowing to the economy.
But such tools are politically harder to deploy, and their stimulative effects are less certain.
How real is the treasury shutdown threat from an income tax refund and stimulative perspective?
He spoke specifically about the so-called neutral rate, which is neither restrictive nor stimulative.
At some point, government spending ceases to be stimulative and just gets in the way.
That means low rates are less stimulative than they would have been in earlier eras.
"Most of those places that have those negative interest rates — it's not stimulative," he said.
Despite the Fed's strongly stimulative policy, inflation has actually fallen a bit in recent months.
And forecasters expect the stimulative effects of tax cuts to fade in the coming quarters.
Not until deflation threatened could the ECB begin stimulative asset purchases, long after other central banks.
Trump has also gone after the Federal Reserve multiple times, calling for more stimulative policy measures.
Quarles' belief that the "neutral level" that is neither stimulative nor restrictive on growth is significant.
Experts question whether the central bank's stimulative plans could harm the euro zone's fragile banking sector.
That comes even though "the current policy is not as stimulative as previously thought, " he said.
This means that the extraordinarily stimulative policies of the post-22019 period need to be unwound.
The move raised speculation that the central bank could start unwinding its stimulative policy this year.
It causes equities to rise for example, it has that stimulative effect like interest rate declines do.
Looking at the current landscape, he said it's become difficult to implement stimulative policies considering political rancor.
Offsetting the potentially stimulative impacts of the gigantic tax cuts only makes a bad situation even worse.
Since those increases are invariably financed with more debt, their effect on the U.S. economy is stimulative.
Of course, the standard claims are being made about the vast stimulative effects of the repatriated cash.
The second is the difficulty of monetary policy to be able to be stimulative when it's needed.
But if we see inflation picking up, then we're perhaps a little stimulative on the monetary policy side.
Bond yields are already falling on that expectation, which could diminish the stimulative power of the rate cuts.
A net 47 percent of investors said global monetary policy was too stimulative, the highest since April 2011.
Mining stocks climbed on hopes of more stimulative policies in China, the biggest buyer of Australia's raw materials.
Fed officials have been discussing where they might reach a "neutral" rate that is neither stimulative nor restrictive.
EVANS: REAL QUICKLY ON '27, YOU THINK IT'LL BE VERY STIMULATIVE, WHICH IS NOT WHAT MOST PEOPLE THINK.
The move helped keep rates on mortgages and other debt low, providing a stimulative measure for the economy.
The meeting comes amid debate about whether keeping stimulative policy measures from the Financial Crisis is still warranted.
DALLAS FEDERAL RESERVE PRESIDENT ROBERT KAPLAN SAYS A RATE CUT FROM HERE WOULD MAKE FED POLICY STIMULATIVE - BLOOMBERG INTERVIEW
BUT CERTAINLY THE PLATFORM, TRUMP'S PLATFORM, IS STIMULATIVE ON THOSE GROUNDS SO HE WOULD BE MORE OR LESS SUCCESSFUL.
" Paulsen said last week he believed the tax bill would be "watered down as far as a stimulative force.
Bottom line, expect more pain ahead unless lawmakers can push forward some stimulative measures as the virus keeps spreading.
This view implies that the Fed will need to raise interest rates to make monetary policy less stimulative. Mrs.
And that's all before accounting for any major stimulative policies that may emerge from the Trump administration and Congress.
This is supposed to be the most stimulative part of the bill, especially for smaller companies looking to grow.
Monetary policy from the central bank has been "the only truly stimulative policy over the past four years," he said.
There is, however, a group of people who have been consistently calling for more stimulative monetary policy this whole time.
The European Central Bank maintains it is on track to move away from super-stimulative policy toward something more restrictive.
We have this hyper, hyper-paced — I'm holding up my phone — stimulative thing, and then our lives are not that.
The chairman then, Ben Bernanke, dared advise investors that the Fed might soon start winding down its stimulative bond-purchases.
Households save their higher incomes in expectation of offsetting future tax rises; omnipotent central banks cancel out the stimulative effects.
"People around the world are spending $2 trillion less on crude oil and that's got to be stimulative," he said.
Meanwhile, Japan recently introduced negative interest rates into the country's economy, and Europe has continued to support its stimulative policy.
The fact that fiscal policy is going to be a little stimulative adds a little additional support for the economy.
It probably could not get away with the European Central Bank's current growth-friendly policies, let alone anything more stimulative.
Stimulative spending at a time of sharply declining demand may not have the intended effect, another GOP senator told CNN.
The report did note that the stimulative impact of the new tax bill has been a little stronger than expected.
About one-third of the stimulus ended up being tax cuts, which have a less stimulative effect than direct spending.
That helps explain why big, unfunded increases in spending, like a basic income not funded by taxes, could be stimulative.
One thing a normal economy means is there's no longer a public sector free lunch where hiring is costless and stimulative.
THOSE ARE THE THREE THINGS I THINK IF THEY GET ADDRESSED QUICKLY AND RATIONALLY COULD BE VERY STIMULATIVE TO THE ECONOMY.
The European Central Bank (ECB) ended stimulative asset purchases in December 2018 and suggested that policy rates could rise in 2019.
Fears that the Bank of Japan (BOJ) could shift to less stimulative monetary policy also boosted the yen against the dollar.
Gregory Faranello, head of U.S. rates at AmeriVet Securities, thinks both central banks will be aggressive in their stimulative measures, however.
A falling yuan, driven by market-oriented capital outflows, would be a stimulative easing policy — if the authorities let it happen.
Japanese and European central banks, by contrast, are seen as adopting more stimulative policies to stave off deflation and generate growth.
The president said the Fed was raising interest rates too quickly and saw no reason to break from stimulative monetary policy.
Both fiscal and monetary policy are expected to remain stimulative, with the Bank of Japan buying enormous amounts of government debt.
The policy trade-off is one of the stimulative benefits of short-term economic shock treatment versus unknown long-term consequences.
Eskesen said there were questions over how stimulative the Trump administration's fiscal policy would be and the composition of the package.
DeLong believes we could have had rapid snapback growth if the government had adopted sufficiently stimulative policies in 2009 or 2010.
In addition, the full stimulative effects of President Donald Trump's tax cuts and increased government spending may not yet have presented themselves.
The Fed hinted at two more rises this year, and dropped its prediction that monetary policy would remain stimulative for some time.
" According to Sanchez, markets are both pricing in economic growth and continued stimulative central bank policies, and "those two things cannot coexist.
If r-star is lower than it was back then, the Fed's policy rate must also be lower to be equally stimulative.
That means that even keeping rates on hold would be increasingly stimulative for Britain's economy, said Elizabeth Martins, an economist at HSBC.
He opposed President Obama's $787 billion economic stimulus package, saying it was weighed down by too much spending that was not stimulative.
"if you want stimulative effects, you get that lowering the corporate tax" rather than by cutting the top individual rate, he said.
The prospect of U.S. policy staying stimulative saw Wall Street's fear gauge touch a record low as stocks notched historic closing highs.
Today, the economy is skating on thin ice because artificially low rates preclude such a stimulative effect when the economy next tanks.
The president said the Fed was raising interest rates too quickly and he saw no reason to break from stimulative monetary policy.
And these stimulative policies are generally viewed as a sign that it's safe to bet on institutions with less-than-pristine credit.
Neutral is the level that is neither stimulative nor slowing for the economy, and there is much debate about where that level is.
Economic weakness is re-emerging even as the European Central Bank reduces its stimulative asset purchases and prepares for eventual interest-rate rises.
"What they didn't understand, is the stimulative effect of the economy from reducing those tax rates and creating stronger economic growth," he said.
In order to obtain stimulative tax cuts, Republicans have for years traded Democrats for what are essentially welfare payments administered by the IRS.
Earlier in the day, Draghi said the euro zone's central bank would announce further stimulative measures if the economic situation does not improve.
If you change the capital repatriations and you bring money back and you do some of these other things, these are stimulative things.
Such assessments could help determine where the Fed views the long-run "neutral" interest rate that is neither stimulative nor restrictive to growth.
"And while domestic growth has been weak, the U.K. probably has better prospects for stimulative fiscal policies than many other economies," Pandl concluded.
"And to the extent that a tax cut might be stimulative to the economy, that's bond unfriendly because bonds don't like economic growth."
I WOULD SAY ON THE ECONOMY, IT SHOULD HAVE VERY, VERY STIMULATIVE EFFECT IN '200 AND SOME FOR A FEW YEARS AFTER THAT.
He thinks the Federal Reserve&aposs stimulative polices have cajoled investors into tech stocks, driving up valuations and exacerbating demand beyond reasonable proportions.
Sanders's economic policy proposals are not really framed as stimulus in this way, and Friedman's case for their stimulative impact is likely overrated.
Former Fed Chairman Ben Bernanke's analysis is that the Fed has stimulative tools to adjust to interest rates as low as 2 percent.
"The stimulative effect of the tax law change has likely been underestimated in the market," wrote Mike Englund, chief economist at Action Economics.
Erdogan, a self-described "enemy of interest rates" who has urged more stimulative monetary policies for years, publicly opposed last year's rate hikes.
The S&P 500 index of large-cap stocks historically advanced as real rates widened, owing perhaps to the stimulative effects of fiscal spending.
So if they hadn't done quantitative easing, to have the same stimulative effect, the Fed funds would have had been negative 300 basis points.
Henrich's bear case revolves around earnings declining by 7.1 percent in the first quarter, even as most central banks continue to pursue stimulative policies.
I MEAN, AT THIS POINT ALL WE HAVE AN EXPECTATION BY THE MARKETS THAT FISCAL POLICY IS GOING TO TURN MORE STIMULATIVE OVER TIME.
A record 4.53 percent of European fund managers said European Union monetary policy was "too stimulative," the highest since the survey began in 1998.
Monetary policy While most economists felt that the Federal Reserve's current monetary policy was about right, four in 28500 felt it was too stimulative.
In March, as the European Central Bank prepared a new salvo of stimulative measures, Jens Weidmann, the president of the Bundesbank, expressed his disapproval.
Higher interest rates would even have a stimulative effect for a while, he says, because people with savings would benefit from higher interest payments.
This appears to limit the ability to propose big, stimulative tax cuts to workers and businesses, but Wall Street will be hungry for specifics.
If that happens, it will crimp economic growth, undermining the stimulative effects of Mr. Trump's deregulation push and his signature $1.5 trillion tax cut.
True, many of the artists chosen are familiar auction stars — Picasso, Pollock, Hirst, Koons — but with Narcissister's stimulative editing they look pretty sexy here.
The federal government isn't likely to pass a big tax cut again this year, which means the stimulative effects will start to wear off.
A payroll tax holiday would also be less stimulative than a one-time payment, say, in the form of a direct, lump-sum check.
The Federal Reserve expects to raise rates three times this year as it rolls back the stimulative policies it implemented after the financial crisis.
Williams indicated the Fed has enough stimulative methods even as its benchmark interest rate is now below 2%, leaving little room for major cuts.
QUICK: YOU TALKED ABOUT HOW ALL OF THESE POLICY INITIATIVES WE'VE SEEN FROM WASHINGTON HAVE BEEN STIMULATIVE TO THE ECONOMY, INCLUDING THE TAX CUTS.
Ulrich added she expects the U.S. economy to slow next year, as corporate profit growth slows and the stimulative effects of tax cuts wear out.
Powell jolted markets in early October when he said the Fed is "a long way" from a neutral rate that is neither stimulative nor restrictive.
The European Central Bank (ECB) will probably conclude its stimulative bond-buying in December and may begin to raise its benchmark rate in late 203.
Others say that Trump's antipathy for stimulative monetary policies will mean more rate hikes down the line, spiking the dollar and consequently hurting gold prices.
If the neutral rate ends up rising because of these policies, then the Fed will believe it is more stimulative than it wants to be.
Central bankers could be more confident in the stimulative effect of what Milton Friedman termed "helicopter money": distributions to the public of newly minted dosh.
But a big business tax cut would be the most stimulative way to move the economy from near recession to 4 or 5 percent growth.
Jim Leaviss, a fixed income fund manager at M&G, said that the stimulative impact of further rate cuts on the economy was in question.
If we were somehow told definitively that no stimulative tax or spending legislation will pass during this Congress, might it prompt an overdue market pullback?
Quadratic Capital Management is recommending that investors bet against two companies that are likely to be sensitive to a Federal Reserve cutback on stimulative policies.
"Beyond that, monetary policy will continue to remain stimulative along the medium-term to secure the stable return of inflation to its target," he added.
The Greek economy was suffering from a severe economic downturn caused in part by a Europe-wide monetary policy that was insufficiently stimulative for Greece.
"The stimulative measures have bolstered confidence that growth and the economy is going to be strong over the next couple of years," Mr. Crowell said.
Even in the past couple weeks, where they do things that sound stimulative to the economy, it's not really changing the direction of interest rates.
After seven years of near-zero interest rates and some $3.5 trillion in stimulative bond purchases, the Fed last December raised interest rates a notch.
It was then that the Federal Reserve and the Bank of England, along with other major central banks, introduced stimulative measures such as quantitative easing.
SO THE TAX CUT WAS STIMULATIVE AND THEN THE SPENDING INCREASES EVEN MORE SO. SO SOME PEOPLE HAVE SAID, YOU KNOW, HEADWINDS HAVE BECOME TAILWINDS.
Hatzius said the solid growth numbers will make the Fed confident it can go beyond the "neutral" interest rate that is neither stimulative nor tight.
The stimulative benefit of the tax cut "is going to hit the economy in a big way this year and the next year," he said.
By the Fed's own testimony, the U.S. economy is strong and the labor market tight, two conditions that do not warrant stimulative policy, Doty aid.
At the same time, Japanese and European central banks are seen as adopting more stimulative policies in an effort to stave off deflation and generate growth.
There are two controversial spending cut ideas the Trump administration has been floating, but they would have perhaps the most immediate stimulative effect on the economy.
Growth remained weak, however, despite the ECB's decision in 2015 to begin an open-ended programme of stimulative bond purchases, like those started elsewhere long before.
Compared to the old Funding for Lending Scheme, the TFS is a pure monetary policy instrument that is likely to be more stimulative pound-for-pound.
Once inflation expectations heighten, the stimulative effect of the current policy will increase as real interest rates, or inflation-adjusted borrowing costs, will fall, Kuroda said.
The president had promised he would spark higher growth but the longer it takes to get to the stimulative policy, the more elusive the economic growth .
Though, some argue the tax bill will be a much less stimulative force and lead to ballooning budget deficits and an increase in the national debt.
The U.S. dollar eased from an eight-day high against the yen as doubts grew that the BOJ would intensify its stimulative monetary policies next week.
He also speculates that because the volunteers had never before cycled at work, the novelty of that activity amplified its stimulative effects and impact on thinking.
They began in October 2018 when the chair said the Fed was "a long way" from neutral, or the rate that is neither stimulative nor restrictive.
Central bankers cut rates 10 times in 2007 and 2008 and embarked on other stimulative measures to boost the economy as the financial crisis took hold.
So, when you have that kind of limited space, I think there is some advantage to being a bit more stimulative than you might be otherwise.
However, there are some Republican leaders who remain hesitant in putting forth a truly stimulative spending plan that includes provisions such as rebuilding our highway system.
Investors are more confident governments can boost growth via fiscal policies and that inflation is picking up after a long period of highly stimulative global monetary policies.
Powell said the Fed was close to the neutral rate, the level on the benchmark fed funds rate that is neither stimulative nor slowing for the economy.
The European Central Bank kept rates steady but said that it could lower them in coming months, and that it was ready to deliver further stimulative measures.
"I am expecting a more stimulative fiscal budget for 2017," Selena Ling, head of treasury research and strategy at OCBC Bank, told CNBC's "Squawk Box " on Thursday.
The bank's overnight interest rate stays at 1.75 percent, still well below the "neutral" rate of 2.5-3.5 percent where monetary policy is neither stimulative or accommodative.
"You'll still have another few years of recovery and it would be more than recovery, it would be a turbo-charge stimulative environment," Black said on Tuesday.
In their view, the stimulative effects of lower interest rates are the same whether the rate goes from 3% to 20133% or from 1% to minus 1%.
There's not a lot of imbalances in the U.S. economy in terms of leverage build-up; monetary policy is quite accommodative; fiscal policy this year is stimulative.
Many analysts also expect that later this year the European Central Bank will begin tapering, or reducing its stimulative quantitative easing program, due to the improving economy.
The robust recovery that followed, however, remains a source of debate among economists, with many giving credit to the stimulative impact of the Reagan-era tax cuts.
The Fed hoped its $85003 billion of stimulative emergency lending would offset $290 billion of contractionary securities sales and not affect the banking system or overall economy.
Higher rates will make it harder for companies to refinance and will put pressure on them once the stimulative effects of tax cuts wear off, Minerd said.
Democrats and the liberal media complained that the Republican tax cuts were excessively stimulative to an already expanding economy and amounted to pouring gasoline on a fire.
Another big plank underneath the idea that Mr. Trump's economic policy will be stimulative is an expectation that he will embrace a large-scale infrastructure spending package.
The active agent in mephedrone is a form of cathinone, a substance that occurs naturally in khat, the mildly stimulative root chewed all over the Horn of Africa.
Economists have long said stimulative fiscal policies are needed in conjunction with monetary measures in order to jumpstart the economy and get the Fed off a crisis bias.
Are they comfortable with a world in which Trump gets to take credit for a debt-fueled, highly stimulative binge of infrastructure projects as he runs for reelection?
It is part of, I think, an experiment that we're watching to see whether negative interest rates will have the stimulative effect that Central Banks are looking for.
The contrast between a more hawkish Fed as central banks in Japan and Europe maintain highly stimulative policies is expected to help the dollar in the medium term.
The gunslinging label refers to investors who demand higher yields for government bonds as compensation for a rise in inflation that is expected thanks to stimulative government policies.
Along with Oppenheimer, a number of research houses predict that a stimulative fiscal agenda, additional infrastructure spending, lower corporate taxes and deregulation will boost demand for reflationary trades.
I would expect that it will be at least 18 months down the road once it passes and is funded that we'll really start seeing the stimulative effect.
The resource sector is hoping that a slowdown in China's economy could be halted by more stimulative policies as the country is Australia's largest importer of raw materials.
However, concerns over the economy led the Federal Reserve to shift to a more accommodative monetary policy stance to start off 2019, which should be stimulative for stocks.
The contrast between a more hawkish Fed and central banks in Japan and Europe maintaining highly stimulative policies is expected to help the dollar in the medium term.
With rates this low and the Federal Reserve moving more to the sidelines and perhaps closer to another stimulative phase, there isn't any immediate guillotine ready to fall.
There's also interest in whether Powell will describe how stimulative the tax proposals might be and what he thinks of the deficit spending resulting from Congressional tax plans.
However, the big question in markets will be how much more Fed officials judge rates have to go to reach an equilibrium that is neither stimulative nor restrictive.
While interest rates under Trump are higher than they were under Obama, they're still considered by the Fed to be lower than average and stimulative for the economy.
They need to keep monitoring the situation and continue passing new stimulative measures until there are clear indications that things have gone far enough on the demand side.
A key question economists have been pondering is what is the level of the "neutral rate," or the point where policy is neither stimulative nor restrictive on growth.
JPMorgan Chase CEO Jamie Dimon told CNN Money in an interview published Monday that Trump could wind up erasing the stimulative effect of last year's tax-reform package.
"Lower oil prices have not proven to be as stimulative as economic theory once had it," said Daniel Yergin, the energy historian and vice chairman of the IHS consultancy.
Proceeds profited the wealthy far more than the middle class and ballooned the budget deficit, with no evidence of giving the economy more than a short-term stimulative boost.
Bass' comments come as several central banks around the world have implemented stimulative policies to the point where around $15 trillion of global debt trades with a negative rate.
America has less slack than it did earlier in the recovery, and the Federal Reserve, fearing inflation, might offset the stimulative effect of tax cuts with higher interest rates.
"Less stimulative fiscal and monetary policy, subdued business and consumer confidence, and sluggish external demand are likely to continue to weigh on growth in the near term," he added.
He pointed out that global economic activity is increasing, a tax cut could boost growth and the European Central Bank is implementing "absurd" stimulative policies in the euro zone.
"In particular, monetary policy would assume a stronger stimulative nature, using initially traditional tools and later, if it would be necessary, non-traditional instruments of monetary policy," Sejko said.
Hickey also pointed out that low interest rates, which could go even lower if the Federal Reserve cuts borrowing costs next month, are stimulative for both businesses and consumers.
Current projections have the benchmark funds rate hitting 3 percent in 2019, a measure that also is considered the "long-run" rate that would be neither stimulative nor restrictive.
Investors had feared that the Fed was on autopilot and would continue hiking rates quarterly until it reached what it considered a neutral level that was neither restrictive or stimulative.
"Europe continues to be stimulative...(but) there's only so much this can continue to help the markets," said Philip Blancato, chief executive of New York-based Ladenberg Thalmann Asset Management.
Specifically, he talked about the "neutral" rate of interest that is neither stimulative nor acommodative, and said history has shown that staying below neutral risks letting inflation run too hot.
He said Trump's policies were like to give way to a period characterized by decreasing globalization and free trade, "aggressively stimulative" fiscal policies, higher U.S. inflation and rising bond yields.
The series of interest rate hikes by the Federal Reserve could begin to slow down the economy as well, especially as the stimulative impact from tax cuts begins to fade.
The Fed has raised interest rates seven times since 2015 and five times since Trump took office in an effort to gradually bring monetary policy back toward non-stimulative levels.
While confidence in the euro zone decreased in the last quarter, it is expected that economic activity will be supported by a stimulative policy of the euro zone central banks.
Committee members also indicated that it's likely the funds rate would remain for two years above what they term the long-term "neutral" rate that is neither restrictive nor stimulative.
"This is a strong message to potential foreign investors that Slovenia ensures a stable, stimulative and development-prone environment for investments," Slovenia's Economy Minister Zdravko Pocivalsek said in a statement.
The January meeting was a departure by the Fed from what had been a slow and steady march toward higher rates and less stimulative monetary policy amid a strengthening economy.
Markets have been nervous that the Fed, in its determination to get a neutral rate that is neither restrictive nor stimulative, may be on the way to making a policy mistake.
In addition, a continuation of stimulative monetary policy in much of the rest of the world should dampen further increases in U.S. 10-year rates, as global investors hunt for yield.
While Lane noted that stimulative monetary policy might cause vulnerabilities to build up over time, he said failing to ease in an economic downturn could worsen the contraction, causing a crisis.
"Simply put, the more the repatriated earnings are used to shore up a corporation's balance sheet or paid to shareholders, the less the stimulative effect of the repatriations," the report said.
Looking ahead, observers say Brazil's growth this year is likely to be drawn mainly from stimulative monetary policy and investor optimism that Congress won't dilute Bolsonaro's social security reforms too much.
Markets face a number of risks over the coming years: European political elections, policy uncertainty from President Trump's administration, the effects of central banks reversing stimulative policy and China's continued transition.
ECB President Mario Draghi is expected to announce more stimulative measures, with hopes of expansion of the asset purchase program and a possible further cut to the already negative deposit rate.
Last week's increase took the bank's overnight interest rate to 1.75 percent, still well below the "neutral" rate of 2.5 to 3.5 percent where monetary policy is neither stimulative nor accommodative.
The European Central Bank had just ended its stimulative bond purchase program while the Fed was seen as likely to continue hiking rates after raising borrowing costs four times in 2018.
"The economy may remain in the doldrums in the first half of this year but will likely pick up thereafter, as authorities have taken fiscal and monetary stimulative action," he said.
The president has blasted the Fed since July for raising interest rates toward neutral levels and easing off stimulative monetary policy, calling the bank his "biggest threat" in a Tuesday interview.
However, she pointed out that policymakers have acknowledged that they overestimated what the long-term "neutral" rate would be, or the level that is neither overly stimulative nor restrictive to growth.
The stimulative effect of the tax bill pumped up a few last months of market lift, but what may be a wildly overpriced stock market is testing the limits of optimism.
Growth in the gross domestic product has been strong, the Tax Cuts and Jobs Act amounts to a stimulative fiscal policy, interest rates are still low and consumer confidence is high.
Years of stimulative monetary policies have encouraged a debt overhang that could prove deeply problematic if businesses will be disrupted for an extended period as they have in China and Italy.
They are telling investors that their bond purchases do not stimulate the economy — yet they will probably need investors to believe that Fed bond buying is stimulative come the next recession.
They are telling investors that their bond purchases do not stimulate the economy — yet they will probably need investors to believe that Fed bond buying is stimulative come the next recession.
That means that these groups stand to benefit the longer Janet Yellen and the Fed maintain stimulative monetary policy, and the more the federal government spends on job-creating initiatives like infrastructure.
Weakness was likely exacerbated by investors unwinding popular trades entered into before this week that the greenback would continue to strengthen on a hawkish Fed and a highly stimulative Bank of Japan.
Speaking the same day the central bank approved a quarter-point increase to its benchmark rate, Powell addressed how close the Fed is to a rate that is neither restrictive nor stimulative.
KERNEN: NO, BUT HE ALSO THINKS THAT WE COULD BE IN DANGER OF BEING TOO STIMULATIVE AND RATES GO UP TOO QUICK AND THEN INFLATION – I THINK WE HAVE TIME, DON'T WE?
Then, on Thursday, the ECB said it would likely wind down its massive bond-buying program by year's end, putting an end to the stimulative policy which went into effect early 2015.
"I think something will get passed on the tax bill, but it will be pretty watered down as far as a stimulative force," said Paulsen, chief investment strategist at The Leuthold Group.
Vicente Sotto, the president of the Senate, said it was a "very odd" statement for Mr. Duterte to make because marijuana is generally considered to have a calming rather than stimulative effect.
The current overnight interest rate is 1.75 percent and Poloz reiterated that it needed to reach the "neutral" range of 2.5 to 3.5 percent where monetary policy is neither stimulative nor accommodative.
She indicated there are still several more hikes to go before the Fed gets to a "neutral" rate that is neither stimulative or restrictive — and that will happen despite the president's misgivings.
The move higher in Japanese stocks came after the Bank of Japan trimmed its long-dated government bonds purchases, raising speculation the central bank could start unwinding its stimulative policy this year.
Most Fed members now believe the economy has come far enough — and the potential for stimulative fiscal policy is high enough — that monetary policy should be neutral with respect to economic activity.
As my colleague Binyamin Appelbaum writes, any stimulative fiscal policy from the Trump administration could well face an equal and opposite tightening of monetary policy by a Fed that raises interest rates.
"JetBlue's Mint product suits the Atlantic market as they will likely come in with stimulative fares to drive customer awareness and loyalty," Cowen analyst Helane Becker said in a recent note to clients.
"While there is still considerable uncertainty about fiscal policy ... it seems likely that it will shift over time to a more stimulative setting," he said at the University of South Florida Sarasota-Manatee.
Expectations that the ECB will announce an even more stimulative monetary policy at its March 10 meeting contributed to the euro's weakness, although the possibility that this might not happen limited the decline.
SO, THE FED'S VERY LOW INTEREST RATES ARE NOT AS STIMULATIVE AS IT WOULD HAVE BEEN, YOU KNOW, 200, 15 YEARS AGO BECAUSE WE'RE NOT THAT FAR FROM WHERE INTEREST RATES ARE NEUTRAL.
Business investment has only risen slightly in the third quarter due to the Trump administration's escalating trade wars, and the stimulative effects of the December tax cuts also appears to have worn off.
That will mean a higher cost structure, higher prices, and lower economic output — real economic problems that stimulative policy can't fix and that will ameliorate only as testing, treatment, and vaccination will improve.
Former White House chief economic advisor Gary Cohn said Sunday that President Donald Trump's tariffs hurt the U.S. economy and undermined the stimulative impact of the administration's massive tax cut passed in 2017.
"Forward guidance," especially a pledge to remain stimulative well into the future until certain milestones are met - would reassure businesses and consumers that interest rates will not be going up any time soon.
Chairman Jerome Powell rattled markets a few weeks ago when he said the central bank has "a long way" to go to get to its desired "neutral" rate that is neither stimulative nor restrictive.
Back then, he said the Fed "no longer [needs] to be stimulating the U.S. economy" and should be "gradually and patiently" moving toward a "neutral" rate that is neither stimulative nor restrictive on growth.
As things stand, he indicated policy is appropriate as unemployment remains low, inflation is around the Fed's 2% target and rates are near where the central bank considers neutral, or neither restrictive nor stimulative.
Trump's promise of stimulative government spending and tax cuts has moved inflation expectations sharply upwards, something all the huffing and puffing of the world's central bankers could not do in the last nine years.
Inflation, growth and interest rates have been stuck in low gear, a "new normal" that defied policymakers' forecasts for inflation to pick up following their stimulative efforts, particularly buying trillions of dollars in bonds.
The other reason for the Fed's objective of attaining 2-percent inflation is, as discussed earlier, the central bank wishes to provide margin for future stimulative rate cuts in the event of a recession.
What's unusual right now is that the Fed's stimulative policies have appeared to achieve one, with the unemployment rate at a 16-year low of 4.3 percent, but it is failing at the other.
The so-called Brexit referendum has stoked bets on more stimulative monetary policy from the Bank of England and European Central Bank to cushion the possible drag on their economies from the vote's fallout.
The benchmark 10-year Treasury note fell from a more than four-year high to below 3 percent after the European Central Bank kept interest rates unchanged and reaffirmed its stimulative monetary policy stance.
The march from a stimulative policy to a neutral policy has been gradual but persistent, and it would be a major surprise if the Fed did not take another step in that direction Wednesday.
GOP lawmakers are worried that altering trade relations with Canada and Mexico too drastically could rattle the economy and wipe out the stimulative punch of the tax-cut package Trump just signed into law.
That is all the more remarkable given that in most cases, rates in the developed world barely reached what would have been described as neutral - neither stimulative nor restrictive - before the last financial crisis.
AND SO THE IDEA OF REDUCING OUR TRADING BALANCE IS ACTUALLY HARDER NOW WITH THE DOLLAR HAVING BEEN STRONG BECAUSE PEOPLE ARE SEEING THAT WE'RE LIKELY TO BE MORE STIMULATIVE THAN MOST OTHER COUNTRIES ARE.
The first big round of post-crisis appreciation took place in 22010, in the wake of the "taper tantrum", as the Fed phased out the stimulative bond-buying it had undertaken in the early 21s.
" JON HILL, US RATES STRATEGIST, BMO CAPITAL MARKETS, NEW YORK "The return to political gridlock in Washington will likely serve to temper growth expectations, or at least moderate the prospect of additional stimulative fiscal policy.
At the beginning of this year, money managers hoped that higher inflation, the Trump administration's stimulative proposals, and higher interest rates would create divergences within the market and give stock pickers a chance to shine.
In November, the BoE rejected the idea that Britain was in a debt-fuelled boom, and stimulative credit conditions are more likely to trigger lending curbs by the bank than a rise in interest rates.
Powell stunned markets in October with his comment that the Fed was "a long way" from a neutral rate that was neither stimulative nor restrictive on growth, implying that multiple rate hikes were still ahead.
We believe that we're going to have a very stimulative effect on the economy by lowering the business tax rate, by lowering the corporate rate, and making America competitive with the rest of the world.
Alan Blinder at Princeton has echoed the idea of making SNAP benefits temporarily higher, and further suggested automatically increasing unemployment insurance payments during recessions (which Zandi's analysis suggests is nearly as stimulative as food stamps).
If the economy sours, cutting the federal funds rate from its current levels — around 2.4 percent — to near zero wouldn't offer nearly the stimulative boost that was delivered the last two times recessionary forces emerged.
Barclays said the natural rate of interest across the developed world, where borrowing costs are neither stimulative nor restrictive given an economy's potential growth and inflation rates, is lower than where nominal rates currently stand.
By 2020, when Mr. Bernanke believes any stimulative effect of the tax cuts will have run its course, we will be facing what he called a Wile E. Coyote economy, after that overeager cartoon character.
The central bank has faced calls from some corners of the market for fresh stimulative measures to aid the anemic European economy, and the third round of TLTROs represent a continuation of its expansionary monetary course.
Bostic said the central bank is "not too far" from reaching a "neutral" short-term policy rate, a term the Fed likes to use to describe a level that is neither stimulative nor restrictive for growth.
SHANGHAI, April 22 (Reuters) - The yuan eased to a 10-day low against the dollar on Monday, but the Chinese economy's solid first quarter performance has tempered expectations that Beijing will step up more stimulative policies.
Thus, in simple Keynesian terms, there is some solace in her deficit-neutral fiscal package: It would be net stimulative to the economy, because it would — in technical terms — drive down the private sector's savings rate.
And our leaders' blind faith in the stimulative effect of corporate tax cuts appears insensitive to the question of whether these corporations, or their owners, are residents of the United States or the United Arab Emirates.
Even the United States, the world's largest economy, and oft-trumpeted standout performer, is expected to decelerate next year as the stimulative effects of President Trump's $1.5 trillion tax cut wear off, leaving huge public debts.
"Without the push of stimulative monetary or fiscal policy — or both — the U.S. economy will probably slow and the unemployment rate will rise," wrote Jared Bernstein, also in The Washington Post, on the same broad subject.
Speaking at an event hosted by XP Investimentos in Sao Paulo, Campos Neto said that he and his colleagues still believe there is a high degree of slack in the economy, and that policy remains stimulative.
Sentiment was also weighed down by worries that China will ease up on stimulative policies after some signs of stabilization in its economy, pulling Chinese stocks down in their worst session in nearly four weeks on Monday.
Wall Street rallied to record highs on Tuesday on hopes of tax cuts and federal spending under a Trump administration, while the bond market has been hammered on worries about inflation that would accompany those stimulative policies.
Reacting in substantial part to what it anticipates will be stimulative policies by the incoming administration, minutes from the Fed's December policy meeting, released on Wednesday, pointed to a faster and steeper pace of interest rate hikes.
The yen, investors' go-to currency in times of market stress was also up half a percent against the euro and dollar after falling sharply on the back of Japan's move into another round of stimulative policy.
SYDNEY (Reuters) - Australia's economy is expected to accelerate at a "modest" pace as weak wage growth is seen weighing on consumption, keeping the need for stimulative monetary and fiscal policies, the International Monetary Fund said on Monday.
"The industrial commodities are already beginning to roll over, so if they do indeed pull-back on their stimulative efforts, it could have an impact on the 'reflation' trade everybody is talking about right now," he added.
While the corporate tax cuts and other reforms may boost productivity and lift economic potential, most of the stimulative effects will fade in 2019 and 2020, leaving behind an economy with a higher debt burden than before.
Separately Thursday, as the Republicans rolled out their tax proposal, Blankfein said in a Reuters report that a good U.S. tax plan will have "stimulative elements" and could get the U.S. to higher than 3 percent GDP.
"Should PBOC remain quiet to allow the interbank rate to drift lower, it may confirm the market's expectation that China's monetary policy has turned more stimulative amid the rising downside risk for the Chinese economy," they said.
Poloz said the economy continues to be buffeted by strong headwinds and needs stimulative monetary policy to counteract them and move closer to full capacity, but he put the onus on business and government to spark growth.
The ongoing investigation into connections between the Trump administration and Russia around the 2016 election has also worried some that the White House may be too distracted to get tax reform and other stimulative measures in place.
However, market experts think international stocks are poised for a comeback in 2020 versus the U.S. due to attractive valuations and a potential trough in global economic growth as world central banks take up more stimulative measures.
So even though US dollar interest rates are in the process of going up, real rates are still very low and we are running a massive budget deficit in the US which of course is highly stimulative.
"The return to political gridlock in Washington will likely serve to temper growth expectations, or at least moderate the prospect of additional stimulative fiscal policy," said Jon Hill, US Rates Strategist at BMO Capital Markets in New York.
Uncertainty following the UK's decision to leave the European Union may be one factor driving bond yields lower, but stimulative central bank policies amid stagnant global growth and moribund inflation are the primary catalyst for ultra-low rates.
The rate increase, by a quarter of a percentage point, took the bank's overnight interest rate to 1.75 percent, still well below the "neutral" rate of 2.5 to 3.5 percent where monetary policy is neither stimulative nor accommodative.
During her testimony, Yellen told Congress that she would like the Fed to continue raise rates in a gradual manner until it reaches a point where it feels rates are "neutral," or neither stimulative nor restrictive to growth.
"Now, with fiscal policy turning from restrictive to stimulative, the economy growing above trend, and investment rising, the short-term equilibrium interest rate is rising, too," Cleveland Fed President Loretta Mester said in a speech Monday in Paris.
The central bank raised rates four times throughout 2018 as officials worried that a combination of stimulative fiscal policy in the form of tax cuts and a historically tight labor market could goose inflation beyond the 2% goal.
The advent of unified Republican control of Congress and the White House also brings the possibility of tax cuts and other stimulative measures that would mean the economy needs less support from low interest rates to keep growing.
"Even if recent stimulative measures improve the outlook for China, we suspect the floor this puts under the rest of (emerging markets) will be less robust than has been the case historically," the U.S. bank said, without specifying regions.
In 2010, as the American economy seemed to be stumbling into a "double-dip" recession, Ben Bernanke, then head of the Federal Reserve, reassured markets that the Fed was prepared to unleash a new round of stimulative asset-purchases.
The post-election market response suggests people expect fiscal policy to move in a more stimulative direction, he said, although he doesn't think the current status of the markets is concerning in terms of the implications for monetary policy.
The startling speed and secrecy with which such a major policy shift was executed suggest its intent was more about delivering a shock to markets that would weaken the yen, than about maximising the stimulative impact of further easing.
The coalition government of Chancellor Angela Merkel's conservative bloc and the Social Democrats — sworn in earlier this month — is having a temporary stimulative effect because it has agreed to boost state spending, particularly in the coming year, Ifo said.
As we have said for literally years, there are headwinds pushing against the Canadian economy and until those headwinds dissipate you won't see a return of all policy parameters back to what we call normal or non-stimulative levels.
GRIFFIN: SO WE'RE LATE IN THE BUSINESS CYCLE AND TO THE EXTENT THIS IS A MOVE THAT WOULD BE STIMULATIVE IN NATURE, YOU WOULD USUALLY RESERVE TAX REFORM OF THIS NATURE FOR RIGHT IN THE MIDST OF A RECESSION.
The IMF revised its 2017 growth forecast for China to 6.5 percent, up 0.3 percentage point from October, based on expectations for continued stimulative government policies, but left unchanged its 2018 forecast for a slowdown to 20183 percent growth.
The coalition government of Chancellor Angela Merkel's conservative bloc and the Social Democrats - sworn in earlier this month - is having a temporary stimulative effect because it has agreed to boost state spending, particularly in the coming year, Ifo said.
The number of global fund managers who believe central banks are "too stimulative" in their monetary policy has reached a six-year high of 48 percent, according to this month's Bank of America Merrill Lynch Global Fund Manager Survey.
The startling speed and secrecy with which such a major policy shift was executed suggest its intent was more about delivering a shock to markets that would weaken the yen, than about maximizing the stimulative impact of further easing.
Recent appointee Richard Clarida told CNBC's Steve Liesman that nearly three years of increases have brought the Fed's short-term interest rate near where it is neither restrictive nor stimulative, a key consideration when considering the future path of monetary policy.
This trajectory has been moderately stimulative but fundamentally very worried about preserving the Fed's "credibility" on inflation and unwilling to do anything that could run even a small risk of inflation peeking up above 2 percent for a year or two.
The Federal Open Market Committee's newest member said the Fed's monetary policy is "much closer" to a so-called neutral level that is neither stimulative nor restrictive than it was when it began its latest hiking cycle back in December 210.
The recent move higher in interest rates came on the heels of good data, but also as Fed Chairman Jerome Powell said last week that the Fed was nowhere near the neutral rate, or rate that would no longer be stimulative.
But what we do know today is that we are still being quite stimulative at a time when the economy really does not seem to need it - except for, as was just mentioned, perhaps there are some lingering adjustment processes ongoing.
While the central bank held rates steady last week, Poloz acknowledged that current monetary policy "clearly remains quite stimulative" despite rate hikes in July and September, fueling market bets the next hike will come in the first quarter of 2018.
"If all companies did [with repatriated funds] was pay dividends and buy back stock, think of that as QE4 ... and far cheaper, in my opinion," Dimon said, comparing the stimulative effect to that of the Federal Reserve's multiyear monetary easing.
The other thing I would suggest is that it's also possible that you still see politicians out there who truly do believe in the stimulative effect of trickle-down, though we have seen very little evidence that that is actually true.
OTTAWA, Oct 30 (Reuters) - Monetary policy in Canada is still stimulative despite an increase in interest rates last week and more hikes will be needed to achieve the Bank of Canada's inflation target, the central bank's chief said on Tuesday.
"Our expectations are for tailwinds for the equity market stateside as elements of the stimulative fiscal agenda broadly outlined by President elect Donald Trump are implemented," chief investment strategist John Stoltzfus wrote in a note to clients on Dec. 19.
"While slightly more than half of survey respondents believe that the current monetary policy stance of the Fed is 'about right,' nearly 31 percent indicate that current policy is too stimulative," Lisa Emsbo-Mattingly, NABE president, said in a statement.
RIO DE JANEIRO, May 22 (Reuters) - Brazil still requires stimulative monetary policy, central bank president Roberto Campos Neto said on Wednesday, adding that the economy may have contracted in the first quarter but it will soon get back on track.
Just as the effect of those stimulative measures was strongest the first time around, the initial move to tighten monetary policy "could well deliver a bigger negative effect on the financial market and the real economy" than future measures, Matsuoka said.
The tax bill was expected to add at least $1 trillion to the 20 trillion U.S. national debt over 10 years, making it an unusual example of deficit spending on stimulative tax cuts at a time when the economy is already expanding.
Saunders, speaking at a meeting of the Federation of Small Businesses in London, had said earlier that growth and inflation were likely to be higher than the BoE forecast, and that policy would remain stimulative even if the BoE raised rates slightly.
If you take the view that NIRP works and that deeper cuts in rates in Japan and Europe would be stimulative, but central banks there are refraining because of other concerns, then we are looking at a global economy running on less gas.
Assessing the current state of interest rates, Clarida said the FOMC, which sets Fed monetary policy, is "much closer" to a so-called neutral level that is neither stimulative nor restrictive than it was when the rate-hiking cycle began in December 2015.
Hicks built on this; when the real interest rate fell to zero and could not be reduced any more, he noted, then expansions in the money supply would cease to be stimulative and fiscal stimulus would be necessary to get the economy moving.
And while the pair are nowhere near raising rates or tapering stimulative bond buying - as Governor Haruhiko Kuroda made clear when the BOJ held policy steady on Thursday - the pair has recently begun sounding more optimistic that their time will soon come.
The U.S. dollar eased from an eight-day high against the yen on Wednesday after skepticism grew that the Bank of Japan would intensify its stimulative monetary policies next week, while uncertainty about Federal Reserve policy pressured the greenback against other currencies.
The People's Bank of China released the monthly credit data for March earlier today, and it appears that policymakers are adding credit growth to all the other stimulative measures like tax cuts, infrastructure spending and preferential policies to keep the economy stable.
In fact, a paper written by San Francisco economist Vasco Curdia last year argues that the natural interest rate has been so low, the Fed's policies were contractionary rather than stimulative even with the federal funds rate at the zero lower bound.
He said he expects the Bank of Canada to hold rates steady on Wednesday and not indicate a hike is coming this year, and for the central bank to increase its growth forecasts based on a stimulative federal budget and robust recent data.
NEW YORK, Nov 14 (Reuters) - The U.S. bond market's gauge on investors' inflation expectations in 10 years on Monday climbed to its highest level in more than two years on bets domestic inflation would rise on possible stimulative policies under a Trump administration.
But for countries that are nearing full capacity, such as the United States and Germany, it said stimulative policies should be focused on improving productivity and expanding the workforce, such as investments high quality infrastructure, technology advancement, public education and child care.
"The resulting increase of the deficit will have a dampening effect on the economic activity that will offset at least part of the stimulative effects of lower tax rates," said Elemendorf, now dean of Harvard University's John F. Kennedy School of Government.
It is a claim for which there remains no empirical economic evidence and has never truly been attempted in isolation of other stimulative measures that have long accompanied tax cuts, such as low interest rates, increased government spending or accelerating global growth.
WASHINGTON (Reuters) - U.S. economic growth will slow this year to 2.3 percent from 3.1 percent in 2018, as the stimulative effects of President Donald Trump's tax cuts wane and the federal budget deficit climbs to nearly $900 billion, congressional researchers said on Monday.
Rupkey said Trump's comment could cast doubt on the Fed's own theory that interest rates below the neutral level of the economy would be stimulative and don't "take the punch bowl away for the economy" until they're much higher than they are currently.
This is true if it is done during a time when stimulative activity by the government is needed and the finances of the government are strong enough that people can look at the heightening of deficits as a blip on the government ledger.
Art, like commodities and equities, is an asset whose value has been bolstered in recent years by the huge amounts of "cheap" money available because of low interest rates and the stimulative policy of central banks called quantitative easing, which increases the money supply.
NEW YORK (Reuters) - The U.S. dollar eased from an eight-day high against the yen on Wednesday after skepticism grew that the Bank of Japan would intensify its stimulative monetary policies next week, while uncertainty about Federal Reserve policy pressured the greenback against other currencies.
" Paul Hickey, co-founder of Bespoke Investment Group, said that in this scenario, the pros of staying invested still outnumber the cons: "As we see rates come in, what you have to remember is that it's very stimulative for the consumer and for businesses.
If uncertainty over trade policy begins to hurt business spending, for instance, the Fed may deliver a shallower path of rate hikes; if the Fed or fiscal policy proves to have been more stimulative than thought then it may need to tighten policy further.
Girard does not expect the Fed to keep to its 2019 forecast of three rate hikes, and she sees just two hikes next year as it gets closer to the neutral rate, or the interest rate level that it no longer believes is stimulative.
In a presentation to lawmakers in Brasilia on Wednesday, central bank president Roberto Campos Neto repeated the Brazilian central bank's view that while the next policy steps depend on incoming data, the evolution of risks and inflation expectations, the weak economic environment warrants stimulative monetary policy.
Fed Chairman Jerome Powell said in a recent interview that he thinks the central bank is "a long way" from getting to a neutral rate that is neither stimulative nor restrictive for growth, and minutes from the September meeting pointed to more increases on the way.
In contrast Trump and other top administration officials have repeatedly urged the Fed to cut interest rates to boost economic growth, which is expected to slow this quarter from a 3.2 percent annual pace last quarter as the stimulative effect of last year's tax cuts fade.
China stocks fell from a 13-month high on Monday, posting their worst session in nearly four weeks, as comments from top policymaking bodies raised investor fears that Beijing will ease up on stimulative policies after some signs of stabilisation in the world's second-largest economy.
In a speech on capital flows, Deputy Governor Timothy Lane speculated about the impact on Canada of a hypothetical Fed rate hike, saying there would be a tightening effect via higher market interest rates and a stimulative effect as a weaker Canadian dollar boosts export competitiveness.
For McCulley, the current climate is seeing the Fed wrestling with where it is between the "new neutral" rate that is neither stimulative nor restrictive, and the "new restrictive" rate that holds back growth and is probably much lower than it has been in the past.
If we assume that Europe avoids a near-term political meltdown that will boost the sterling against the euro, but we do not assume forecasts in excess of 0.90, even if the ECB look to row back on stimulative monetary policy into the third or fourth quarter.
Benchmark bond yields in the euro zone, Britain and Japan are also expected to climb along with U.S. Treasuries as the Bank of England contemplates an eventual rate rise and as the European Central Bank and Bank of Japan look to move away from exceptionally stimulative policy.
"Fiscal policy, if it were more stimulative and if it could be directed into more socially productive uses (like) infrastructure investments that strike me as something we need to do anyway, why not do it when interest rates are lower," Evans said at a Council on Foreign Relations breakfast.
But they argue a combination of tax hikes on the super wealthy -- Ocasio-Cortez has floated a 70% rate on income over $10 million -- and cuts to fossil fuel industry subsidies and military spending, in addition to the stimulative effects of the new public spending would offset any cost.
Indeed, the Bureau of Labor Statistics' consumer price index to which Rieder refers has shown that prices are increasing by less than 2 percent per year, despite years of stimulative monetary policies from the Federal Reserve as well as an unemployment rate that has fallen to 4.3 percent.
Viewed this way, Friedman is simply saying that Sanders's agenda will be adequately stimulative to get the economy back on track and close the "output gap" — the gap between what the economy is producing right now and what it could be producing if all its resources were fully employed.
Public policy would need to deliberately try to foster catch-up growth, most likely through a combination of stimulative fiscal policy and a Federal Reserve willing to let wages rise faster than labor productivity in order to make up the lost ground in the labor share of national income.
And then they said, I'm summarizing, that all of the spending has to be stimulative, meaning things where people will put the money back out on the street as fast as possible: direct benefits, so-called shovel-ready, I think that was the term, infrastructure projects, stuff like that.
Speaking at a Credit Suisse event in Sao Paulo, Campos Neto echoed remarks he made last week, noting that Brazil's economy is growing gradually, monetary policy is stimulative, and the next steps on rates continue to depend on economic activity and the balance of risks and outlook for inflation.
Fed Chair Janet Yellen and ECB President Mario Draghi "seem committed to tightening, both quantitatively and via interest rates, but monetary conditions will remain fairly stimulative so long as inflation does not become a problem," said Charles Dumas, chief economist at TS Lombard, in a note to clients.
U.S. President Donald Trump has taken a swipe at the Fed, Italy has put pressure on the ECB to extend its asset purchases, and Indian Prime Minister Narendra Modi has made it clear to the Reserve Bank of India that he wants stimulative monetary policy ahead of national elections in May.
Thus, unless the economy is hit by an unexpected shock (there is no shortage of possibilities, including geopolitical trouble or a trade war), there is good reason to believe that stimulative fiscal and monetary policy will help to keep economic growth on track for at least another couple of years.
Jason Vieira, chief economist at Infinity Asset Management in Sao Paulo, said the most notable points were policymakers' recognition that the stimulative effects of previous easing have yet to be felt on the economy, and that the transmission of monetary policy to borrowers now is greater than it was before.
In a seemingly off-the-cuff remark in a PBS interview after the market had closed, Fed Chairman Jerome Powell said interest rates were "a long way " from what he considered neither stimulative nor restrictive — the central bank's holy grail of "neutral" where it could stay put over at least the medium term.
Even if the economic data does not suggest the need for more rate cuts, the potential power of the markets to prod the Fed into continuing on a stimulative easing path makes it more difficult for active managers to invest on a fundamental basis, said Eddy Vartu, a portfolio manager at Osterweis Capital Management.
"Taylor's rule would still point to a low federal funds rate by past standards, especially if the rule were tweaked to allow for the fact that the 'neutral' level of the rate has fallen," wrote John Higgins, chief market economist at Capital Economics, referring to the point that is neither stimulative nor restrictive regarding growth.
Even if the economic data does not suggest the need for more rate cuts, the potential power of the markets to prod the Fed into continuing on a stimulative easing path makes it more difficult for active managers to invest on a fundamental basis, said Eddy Vataru, a portfolio manager at Osterweis Capital Management.
That shift appears to have been, in part, a corrective note to financial markets, which officials believed had turned volatile in December on the belief that Fed officials were not sufficiently worried about economic uncertainty at home and abroad — or willing to adopt more stimulative policy measures if those uncertainties turned into economic drags.
While more forceful policy easing may not be on the cards, Xie of OCBC added: "However, as mentioned by the politburo for the first time that the economy is still facing downward pressure due to structural and systemic reasons, this implies that there is no U-turn in China's stimulative policies in the near term," he said.
On the initial news that the nonfarm payrolls number was more than 215,21 above economists' expectation, gold did what one would probably expect, given the precious metal's function as a bet on market fear and on more stimulative Federal Reserve policy: It gapped down on heavy volume, bottoming out at $2350,336.3 in the minute after the release.
"For a long time now, I believed that the dangers are probably more on the tightening side than they are of staying easy for too long," Summers told "Squawk on the Street," saying he's worried the "sugar high" from Trump's corporate tax cut and other stimulative policies won't be able to prop up the economy forever.
BLANKFEIN: I THINK THAT WAS ALREADY BAKED IN. AND OF COURSE, THE FACT THAT, YOU KNOW, PRESIDENT-ELECT TRUMP'S PLATFORM IS, YOU KNOW, IS SO STIMULATIVE IS JUST GOING IN THE DIRECTION OF THE TAILWIND -- KERNEN: BUT YOU CAN -- DELTA SAID THEY SAW, THEY COULD DRAW A LINE BETWEEN WHAT HAPPENED AND SOME IMPROVEMENT IN THEIR RESULTS.
"There's a feeling that with the Republicans controlling both the White House and both houses of Congress that it's more likely they will get fiscal stimulative policies passed which could spur growth and push inflation higher which bond markets don't like," said David Coard, head of fixed income sales and trading at Williams Capital Group in New York.
THE QUALITY OF THAT GROWTH HAS GONE UP. THERE'S A LOT MORE BUSINESS INVESTMENT SHOWING UP AROUND THE WORLD AND THAT MEANS THAT THE EQUILIBRIUM INTEREST RATE IS STARTING TO MOVE UP WHICH MEANS THAT POLICY, WHETHER IT IS IN THE U.K., IN THE U.S., IN EMERGING MARKETS, IF YOU ARE STANDING STILL, IT IS BECOMING MORE STIMULATIVE.
So have the "equilibrium" short-term rates which anchor monetary policy, according to estimates by John Williams, president of the New York Fed, and Kathryn Holson and Thomas Laubach of the Fed in Washington, DC. Falling equilibrium rates mean that any interest rate central banks choose is less stimulative than it would have been a decade or two ago.
"Kuroda comments overnight hint at a departure from stimulative policy and what is also interesting is that yen buying over the last few weeks seems to have been coming out of Japan itself, rather than from overseas investors closing carry trade positions so this move could still accelerate," said John Marley, head of FX strategy at Infinity International, a currency risk management firm.
AND THAT'S GONNA FLIP BECAUSE THE FED IS NOW LETTING BONDS ROLL OFF, THE BUDGET DEFICIT IS INCREASING, A TAX CUT WOULD INCREASE THE DEFICIT FURTHER, AND TO THE EXTENT THAT A TAX CUT MIGHT BE STIMULATIVE TO THE ECONOMY, THAT'S BOND UNFRIENDLY, BECAUSE BONDS DON'T LIKE ECONOMIC GROWTH AND ALSO IT'S MORE BONDS, EXPANDING THE DEFICIT, SO EVEN MORE SUPPLY.
One cause of declining rates continuing to fall over the years is that the models utilized by the Fed and Wall Street have "been very focused on the U.S.," Slok said, whereas over the last few years, stimulative monetary policies from the European Central Bank and the Bank of Japan have played a crucial role in holding interest rates down.
"Some of that will get eaten up by either increases to minimum wages or some banks have talked about one-time bonuses, but you are going to get a portion of that going to the bottom line which is going to support dividends, buybacks, and importantly customer growth and loan growth should these measures turn stimulative for the economy," he added.
If we had even more stimulative fiscal policy or if the state of the global economy was much stronger, so that that increased exports, if the state of the economy was even stronger than it is now -- and it's really quite solid -- you know, if there's other additions to aggregate demand, that tends to increase inflation and then the Fed wouldn't have to do as much.
Rising rates are what the CBO assumes in its budget projections, which should not comfort Republicans if they are considering deficit spending as one way to pay for the President's ambitious agenda: Source: Congressional Budget Office Soaring markets: Stocks had their best day of the year on Wednesday on optimism that the President will achieve much of his stimulative agenda given the political skill he showed in his Tuesday speech.
The wound on his sole has intermittently wept and cracked and granulated for years, but never closed, despite a number of stimulative water and pressure and debridement treatments, and its inability to heal is the single reason he has been prohibited the kidney transplant for which he arranged a donor long ago but for which he would need to be infection-free during post-operative immuno-suppression therapy.
Powell told a House committee Tuesday that lawmakers should curb federal spending while the economy is running strong before a downturn forces Congress or the Fed to pump stimulative spending into the U.S. "Putting the federal budget on a sustainable path when the economy is strong would help ensure that policymakers have the space to use fiscal policy to assist in stabilizing the economy during a downturn," Powell said Tuesday before the House Financial Services Committee.

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