Mohamed A. El-Erian has a piece on Bloomberg on the FOMC today with his thoughts:
He reviews what was said and so on, but the most interesting is this:
- Because it faces a historically unusual mix of cyclical, structural and longer-term issues, the behavior of the U.S. economy isn’t easy to capture well with existing models, including those used by the central bank. The nation’s policy response has fallen well short of the “first best” given the constraints imposed by the political polarization in Congress on virtually every policy-making entity other that the Federal Reserve; and the central bank doesn’t have sufficient instruments to compensate for this.
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Yep.
