America's economic growth depends on ports for a competitive edge in exports and for the flow of imported goods that bolster Americans' paychecks. The costs incurred during slowdowns at U.S. ports, recent and otherwise, highlight the considerable importance of ports to the U.S. economy and the need to reform U.S. port labor law. Indeed, if America is to reap the benefits of the two major new free-trade deals currently under negotiation, the Transatlantic Trade and Investment Partnership (TTIP) and the Trans-Pacific Partnership (TPP), U.S. ports must be open for business.
The economy is growing, labor markets have improved dramatically, and inflation is forecast to return to two percent over the intermediate term. However, the Fed still expresses extreme caution about normalizing monetary policy, citing myriad concerns, ranging from sluggish wage growth and low inflation to foreign economic and political risks, which might delay the date at which interest rates finally lift off their zero lower bound. This creates the potential for an erosion of the FOMC’s credibility and suggests the Fed lacks a clear strategy for getting monetary policy back on track.