The Fed Must Walk A Fine Line Wednesday As Financial Markets Hang In The Balance

A resurgent economy, percolating inflation and a stock market ripping higher don’t seem to make much of a recipe for easy monetary policy. But that’s the position in which the Federal Reserve finds itself. The challenge for the central bank this week will be to explain that position to investors and assure them that even if the status quo remains, that won’t provoke policymakers to change course, nor should they. “The basic line is, ‘Everything looks a little better, but there’s still a lot of uncertainty and we’re not going to do anything soon.’ I’m sure we’ll hear that,” said Bill English, former head of the Fed’s Division of Monetary Affairs and now a finance professor at the Yale School of Management. Read more at CNBC.