Posted on 12/14/2013 2:29:37 PM PST by BenLurkin
For the Federal Reserve, which is not only swapping drivers but probably shifting to the slow lane in terms of bond purchases in the next month, the automotive warning may apply to its economic views, too.
The Fed’s attention has been on the rapidly improving employment picture. This week, several economists suggested the Fed’s 6.5% unemployment-rate threshold for scaling back stimulus could be hit fairly soon.
Before making a move on interest rates, though, a quick glance at its blind spot—inflation—may be in order. The Fed’s critics, who in recent years have accused it of risking rapid inflation through unorthodox policies, have egg on their faces. In fact, the danger of disinflation—decelerating price gains—now looms.
...
Economists at the Federal Reserve Bank of Cleveland calculated the most likely date of a Fed rate increase if an inflation floor of 1.75% were used. Their conclusion: a year later than the likely date if unemployment is the only thing being considered, or the first quarter of 2016
(Excerpt) Read more at stream.wsj.com ...
LOL... 6.5%.
Wasn’t it just revealed that the BLS/Census lied about the decreasing unemployment rate for the 2012 presidential election?
And how will the federal government pay its loan interest if the Fed hikes the rates?
What? Where is this suppose to be happening? Or should I be asking on which planet is this happening?
Don't they understand the flawed way the unemployment-rate is calculated?
Current Fed Stimulus of $85 billion a month is expecting the availability of cash to improve the economy; just throw money at the problem, sound familiar?
What’s worse — the new plan appears to be that they want to forget employment. And intentionally drive up prices instead.
Insanity.
Bs... The IMF is calling the shots... And they already forbade it.
“...The Fed’s attention has been on the rapidly improving employment picture....”
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Now if they can just drive/lure several million more workers out of the workforce the “unemployment rate” will be where they want it.
Fed gov can implement financial repression. If interest rates must go up to prevent the US dollar from losing its world reserve currency status, then the Fed short falls will be financed by American citizens via financial repression. As the Fed cuts back its purchase of T bonds and no foreign/private investor steps up to buy it, to prevent the rates from shooting up too fast, the Fed gov will mandate a portion or all of fed gov pensions will buy T bonds, and private 401k/IRA must invest a portion of its contribution or accounts to T bonds. IAW US private citizens one way or another will be forced to buy T bills with part or all of their pensions. The other option is to let the interest rates soar and implode the fed/state/local gov. The elites and statists will not let that happen. DHS/IRS is well armed to enforce such laws.
This crowd still believes that employment will only improve when inflation increases. Crazy, but they do.
How can the Fed’s economists believe that our ‘’rapidly improving employment picture’’ will continue to improve rather then crash when one-sixth of the U.S. economy — the healthcare sector — is about to be negatively impacted by the arrival of the ObamaCare plague?
I think the economy has gone down the rabbit hole, and it won’t come out until the Keynesian fairytale is over.
No no.
Our brilliant Pressdent says we have to “dig our way out” of the hole.
“This week, several economists suggested the Fed’s 6.5% unemployment-rate threshold for scaling back stimulus could be hit fairly soon”
Somebody is on some really good recreational drugs. :-)
...just like these "best minds" think printing money out of thin air will magically fix an economy.
6.5%...must be in an alternate universe.
The economy won’t improve until the Commies leave the WH.
Yeah, like who would be against more money, dude? Heh.
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