Tax Package First or Raising Fed Rates? Here is some short brief...

The Fed upcoming meeting will discussing about hike rate and tax package, Several private economists attending the Philadelphia meeting said they didn't expect the tax package to have a big impact on the Fed's monetary policy trajectory. as reported from Bloomberg Quint, While the central bank will need to keep watch on the demand-side effects of the tax cuts, "I wouldn't see much need for the Fed to do anything different" than already planned, said Glenn Hubbard, who served as head of the Council of Economic Advisers under President George W. Bush. "The only thing it might say to the Fed is that it's OK to keep'' raising rates, said Hubbard, who's now a professor at Columbia University in New York.

Former Bank of England policy maker Kristin Forbes said the Fed would probably have to pick up the pace of its rate hikes. but added that any speed-up would be from what has been a historically very slow tightening campaign. The "pace might accelerate a bit but it doesn't mean we're pushing any rate hikes into an uncharted, much faster territory,'' Forbes, who's now a professor at the Massachusetts Institute of Technology, said at the economists' annual meeting.