There’s not much more the Fed can do. They really are out of bullets. I suspect that Obama will not acquiesce even in the face of a GOP rout on Congressional races in the fall.
Obama and his cadres are true believers in a way that the Boy President wasn’t. Clinton needs to be liked and gets politics. He compromised and tactically cut around the GOP while coopting their program. He wraps himself in it all the time.
Obama will reject that and fight to the death. He’s taking Reid down with him along with the DNC. That’s why I believe little will change after the GOP takes over Congress. It will be better for us on judicial and other appointments, but Obama will still use every lever of federal power to undermine the free market.
So the next two years will be, hopefully, the GOP working to rein Obama’s abuses in and the 2016 POTUS will sit on the greatest economic expansion since the Lochner Era. Just undoing all the anti-business executive decisions would free up capital. The US could grow 5%+ in real terms as excess labor is brought into productive capacity and welfare/government debt is curtailed.
Agree completely. The Fed has done what it can do (and the right thing to do IMHO). It’s all been muted by the fiscal disaster in Washington on both sides of the aisle.
BTW your signature is perfect for this discussion :-)