EL-ERIAN: The bigger signal from the Fed this week
Fed Chair Janet Yellen addresses the Executives’ Club of Chicago, Friday, March 3, 2017, in Chicago. Both general and specialized media outlets (including the front pages of the Financial Times, the New York Times and the Wall Street Journal) have provided quite comprehensive coverage of this week’s policy signaling by Fed officials which, yesterday, culminated in quite explicit messages from the top leadership (Chair Janet Yellen and Vice Chair Stanley Fischer). Having said that, there may well be something that, at least as of now, is not getting enough attention in the otherwise comprehensive media coverage of Fed signals: that is, an ongoing and gradual shift in the Fed’s policy regime.