The Fed Continues Trying to be Insane
The Fed did the right thing, and moved in the right direction, though in part for the wrong reason today.
Go to Tim Duy for the rational approach. For me, I quote the Fed
Inflation is expected to remain low in the near term, in part because of earlier declines in energy prices, but to rise to 2 percent over the medium term as the transitory effects of past declines in energy and import prices dissipate and the labor market strengthens further. [emphases mine]
check the market
and conclude that, with one exception, the only question worth asking is, “What color is the sun on the planet of the Fed Governors?”
Right, but you forget a big part of the “inflation story” is how the government accounts them. Inflation barely has budged since 1997 outside rising oil prices.
Let me see..”.Inflation barley has budged since 1997″…I think oil prices are relatively low over the past 10 years right now are they not? The real inflation in real terms, the things they do not want to count-measure is health care and food price inflation while real wages have stagnated at the same time. We also have the lowest growth in GDP in years and the projected .5% 10 year growth in GDP from the TPP is another joke on the American people…The Economic Policy Institute.com has a good state by state and national wage inequality report out today that you might be interested in.WallStreetonParade.com says that all the big banks and hedge funds have already began to price in Brexit so gold is up.
I’ve often wondered if the Kepler planet detecting satellite wasn’t launched in a desperate effort to find some place that our currently dominant economic theory is applicable.