Full Article: Federal Reserve Admits it Never Knew What it was Doing
By: David Haggith
The Federal Reserve is, at last, acknowledging at top levels that its economists are completely baffled, its recovery is failing, that the Fed cannot raise interest and may even have to heat up its stimulants … or we may end up with a permanently scarred and stagnant economy.
Federal Reserve bank president expresses deep reservations about Fed’s recovery
Last week, Boston Federal Reserve President Eric Rosengren opened a meeting with Fed Chair Janet Yellen with the following statements:
He said the “nonconformist” behavior of the economy remains a challenge for policymakers trying to determine whether low growth and low inflation are now a permanent state of affairs…. It could mean the country’s economic performance has changed for good. Policymakers are trying to determine “whether firms and households have changed behavior in ways that are likely to be more permanent than transitory, whether slow growth in productivity is transitory or permanent, and whether recent trends in personal saving behavior are likely to persist well into the future,” Rosengren said. The answers will shape whether officials at the Fed and other central banks … will have to keep nontraditional tools in hand and be prepared “to address any emerging risks to the current recovery.” The fact that 10 year Treasury yields remain near or below zero on an inflation-adjusted basis, Rosengren said, “suggests a lack of confidence in U.S. and global growth prospects, and in the ability of policy authorities to offset weak growth.” (Newsmax)
Full Article: Federal Reserve Admits it Never Knew What it was Doing
By: David Haggith
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