Posted on 07/24/2015 4:20:03 PM PDT by BenLurkin
The rate forecast was included with a series of bearish projections on U.S. economic growth and inflation that were presented to policymakers at their June 16-17 meeting.
The disclosure of the sensitive information is the latest blow to Fed's reputation for secrecy around policy deliberations.
Federal prosecutors are currently probing an alleged leak at the Fed of market-sensitive information to a private financial newsletter in 2012.
"It regrettably appears once again that proper internal controls are not in place to safeguard confidential Federal Reserve information," said Representative Jeb Hensarling of Texas, a Republican who chairs the House Financial Service Committee and is pressing Fed Chair Janet Yellen for documents regarding the 2012 leak.
...
In the projections, which stretched from 2015 to 2020, the staff did not expect inflation to ever reach the Fed's 2.0 percent target. By the fourth quarter of 2020, they saw the PCE (personal consumption expenditure) inflation index rising 1.94 percent from a year earlier.
The Fed's staff also took a dimmer view of long-run economic growth, expecting gross domestic product to expand 1.74 percent in the year through the fourth quarter of 2020. The views of Fed policymakers for long-term growth range from 1.8 percent to 2.5 percent.
The Fed goes to great lengths to manage the release of sensitive information. Policymakers and staff avoid making public comments just ahead of policy meetings, and the Fed makes journalists turn in their phones before letting them into a locked room to see a policy statement and prepare news stories just before the interest rate decision is published electronically.
(Excerpt) Read more at in.reuters.com ...
That's a government defining bumper sticker.
And is is the establishment entrusted with the nation’s money supply. What an evil joke.
Only the right people are entitled to this kind of information. We can’t have a level playing field.
I wonder how they can make these long term predictions if they don’t know who the president will be for the next 5 years.
Are they of the opinion that public policy decision have no impact on the economy?
inadvertantly? lol..yeah right.. the fed is scared as hell to raise rates..terrified so they leak out this stuff on purpose..its such a scam these days..they have no clue what will happen since the pumped so much money into the system
I think you may have hit the nail on the head.
I think you are correct. Raising rates now (or in the near future) would further depress our moribund economy, all but guaranteeing the election for the republicans next year. The Fed, a very political institution, would be quite aware of this.
"Leaking" a supposed rate hike helps maintain their dwindling credibility as inflation fighters.
Yes - they are planning on a tiny tiny rate hike - that they probably won’t do - and they can’t say it - so they leak it. Just a bit of propaganda.
If you look at the continued loss of manufacturing jobs (the kind that actually produce wealth) and the VIX or even the velocity of money - there is NO indication of any recovery. Oil is going down - commodities are going down, because instead of wealth producing jobs, we have ever more wealth destroying government.
Sadly, we have two options - the Democrats promising every more socialism and the republicans promising socialism lite. The biggest difference between the parties is which competing banking cartel they protect.
A lot of people seem to have forgotten that socialism has killed over 200 million people - and continues to this day.
No controlling legal authority -- Al Gore
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