It’s laughable that the Fed thinks it can monitor markets and bubbles. They’re economists and most of them can’t forecast economic growth within 2 percentage points. That kind of overconfidence at the Fed makes markets overconfident and sparks the bubbles.
Bullard spoke on Fox Business and also called it a “pretty good economy”, citing a better jobs picture. In January, Bullard forecast +3.2% GDP this year.
The Fed is starting to feel heat from some former allies. Former Fed Governor Kevin Warsh was on CNBC today attacking the Fed’s easy policy. He was one of the architects of the policy but now says normalizing interest rates … Continue reading
Dudley’s comments are in the Q&A after a speech in Puerto Rico. He also says Fed rate moves will depend on outlook for economy. The headline is slightly dovish. The Fed appears to be willing to tolerate some wage inflation … Continue reading
NY Fed President Dudley is in San Juan, Puerto Rico today but his speech was limited to prescriptions for reform and fiscal consolidation. A Q&A is up later so hopefully we hear some comments about the US outlook.
Plosser worried about low market volatility in comments on Fox Business.
Deutsche Bank made its best guesses at which FOMC members belong to each dot on the Fed’s chart released yesterday. These are for Fed funds target rates at the end of 2015 and 2016. There will be some Federal Reserve … Continue reading
Here are the new FOMC central tendency forecasts: Here are the old ones: The big cut in growth expectations brings them into line with the consensus at 2.2% so it’s not a big surprise. Some were expecting inflation forecasts to … Continue reading
Highlights of the June 18 FOMC decision: QE monthly buying cut to $35B from $45B, as expected Rates left at 0 to 0.25%, as expected Highly accommodative policy ‘remains appropriate’ Jobless rate is lower, still elevated Growth in economic activity … Continue reading
1. A sign the Fed is willing to tolerate above-target inflation for a period That’s about the most-dovish realistic surprise in Yellen’s bag of tricks. Wage inflation is still close to nil and Yellen could say she wants to see … Continue reading