Skip to comments.Fed's Kocherlakota blasts new rate guidance
Posted on 03/21/2014 6:45:24 AM PDT by Red in Blue PA
WASHINGTON (Reuters) - The Federal Reserve should have promised to keep rates near zero until U.S. unemployment falls below 5.5 percent, as long as inflation and financial stability risks are contained, said the lone dissenter to the Fed's policy decision this week.
By dropping the Fed's pledge to keep rates low until the jobless rate reaches a more healthy level, the U.S. central bank is sending the wrong message on both inflation and jobs, Minneapolis Federal Reserve Bank President Narayana Kocherlakota said in remarks released on Friday.
On Wednesday the Fed, in its first policy-setting meeting under Fed Chair Janet Yellen, said it would factor in a wide range of economic measures as it judged the correct timing for raising rates.
Rates have been kept near zero since December 2008, and the Fed had since December 2012 promised to keep them there until the unemployment rate fell to at least 6.5 percent.
(Excerpt) Read more at finance.yahoo.com ...
Apparently they know the unemployment rate will never get that low (at least, before the final collapse), even with messing with the numbers, so they had to come up with some way to start raising rates anyway.
Man, we are in for a seriously bumpy ride. As it has been for the last 8 years, it’s going to continue to just get worse, but the exponential nature of it is going to start being noticed by more people.
Cake is never free.
5 years without a downturn, supported by a punchbowl of easy money. When good things stop, they stop quickly. Whenever we turn down, it will be ugly.
How about a law that no one can offer a job to a non-citizen until every attempt has been made to hire a qualified US citizen? It's extreme and won't happen, I know. But it's about the only thing that could stop the elitists from concentrating wealth upward.
> On Wednesday the Fed, in its first policy-setting meeting under Fed Chair Janet Yellen, said it would factor in a wide range of economic measures as it judged the correct timing for raising rates. Rates have been kept near zero since December 2008...
Thanks Red in Blue PA. Obama Recession ping. Have a great day, all.
Amateurs in an amateur’s government.