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accommodative |
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The
flood of liquidity created by a period of very accommodative monetary
policy pursued the yields available from income-producing assets, namely
loans and bonds. It
has become widely recognized that, with consumer price inflation
well-anchored, overly accommodative monetary policies may find their
expression in asset price inflation. If the current
monetary policy is neutral rather than accommodative, analysts have
asserted that rate rises should soon remit, although most expect the Fed
to raise rates by a quarter point again at its next meeting on January
31, 2006 --Alan Greenspan's last meeting as the Federal
Reserve's chairman. |
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