• Date of first rate hike has been an enhancement to guidance but creates problems
• Fed wants to be sure not to take away accommodation until economy has upward momentum
• Looking at economic threshold before raising rates (unemployment rate, etc.) as advocated by Yellen, Evans, very promising
• Housing a major player in this drama; market moving in right direction, prices rising, should loosen mortgage lending conditions (oh, goody! What could go wrong?)
• Interest on excess reserves not a major monetary policy tool