Posted on 07/19/2018 12:24:30 PM PDT by Vendome
The Fed said that it now planned to keep short-term interest rates near zero until late 2014, continuing the transformation of a policy that began as shock therapy in the winter of 2008 into a six-year campaign to increase spending by rewarding borrowers and punishing savers.
The economy expanded “moderately” in recent weeks, the Fed said in a statement released after a two-day meeting of its policy-making committee, but jobs were still scarce, the housing sector remained deeply depressed and Europe’s flirtation with crisis could undermine the nascent domestic recovery.
The Fed forecast growth of up to 2.7 percent this year, up to 3.2 percent next year and up to 4 percent in 2014, but at the end of that period, the central bank projected that the recovery would still be incomplete. Workers would still be looking for jobs, and businesses would still be looking for customers.
“What did we learn today? Things are bad, and they’re not improving at the rate that they want them to improve,” said Kevin Logan, chief United States economist at HSBC. “That’s what they concluded — ‘We’ve eased policy a lot, but we haven’t eased it enough.’ ”
(Excerpt) Read more at nytimes.com ...
This is in 2012 and none of those numbers came to fruition.
“Years away” under Democratic control.
They never expected Trump’s tax cuts.
The Federal Reserve are simply Soviet-style central planners, except they handle the most important commodity of all - money.
They were already baking a Clinton presidency into their projections back in 2012.
Like (this)
Not like(this)
The Obama Recession is finally over
Obama was President and they assumed Hillary would be next. So yeah. recovery was at least a decade away at the time, given those assumptions. On the other hand, one year of Trump and boom, problem solved.
No matter the year to year details, from 2012 on the recovery has taken years (by the way, 2012 to 2018 is six years, and I would suggest that is good enough for the use of “years” in the Fed’s forecast.
Am I an “always right” Fed supporter. I am more near the opposite of one. That does not make their prediction in 2012 so terribly off, even though MOST long range GDP predictions are off, as the data behind them is not so current when they make them, with the economy still shifting while the data is stale.
I think there is a more ominous point to be made here:
1. The FED bought billions of dollars in stocks from unknown companies while President Obama was in office in order to artificially inflate the economy and thereby insuring his re-election. This was operation twist.
2. Now that Trump is in office, the FED is selling the stocks they purchased. That means the stock market and the larger economy are working against a FED that is now artificially suppressing the stock market and raising rates to stifle economic growth further.
I think these common habits of the FED when Republicans achieve power is one of the most under discussed problems with our political system. It was used to take out Bush SR. and is regularly used to manage the economy toward keeping or throwing out a President based on economic outcomes.
Wheres that little weasel Paul Krugman? That moron said the economy would crash if Trump were elected.
Who is Paul Krugman? /s
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.