The Third Mandate Is Official – And “It’s Stunning” That You Don’t See It

The Third Mandate Is Official – And “It’s Stunning” That You Don’t See It

Via Kevin Muir of “The Macro Tourist” fame There has been a whole lot of ink spilled on the reason for the Fed’s recent break from data dependence. Many pundits believe the Federal Reserve’s hawkish guidance, even in the face of low inflation readings, is a partisan attempt by Yellen & Co. to derail the weak recovery. I don’t buy that argument. To think the FOMC board would leave rates easy for Obama or Hillary, but raise them for Trump is just foolish. The Fed might be incompet
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4 thoughts on “The Third Mandate Is Official – And “It’s Stunning” That You Don’t See It

  1. It is going to be way more difficult for them than docking a boat because of their modeling. Where is your replay of Forrest Gump jumping off his shrimp boat etc. ? This is the more likely scenario, a boat with the motor running meandering at random.

  2. “When you’re docking a boat in Sydney Harbour, the San Francisco Bay, or elsewhere, you don’t run it in fast towards shore and hope you can reverse the engine hard later on”

    There is nothing like the visual of a Fed governor docking his yacht to connect with main street.

  3. they’ve dropped the anchor while pretending to change direction because they know that due to their mistakes years ago the ship is too weak to touch the dock at any speed, if they stay away from the shore they can blame something else than piloting error

  4. Congress and Wall Street did not object much when Bernanke ‘got creative’ and the Fed began the QEs. Of course Congress did not deal with the structural problems in the economy because, well, they are simply incompetent. Wall Street generally views the Fed as more competent in the economic policy arena because IT IS MORE COMPETENT than Congress.

    The Fed’s hands are tied somewhat by the Humphrey-Hawkins mechanism and the history of the economic logic used there; real GDP growth, inflation, unemployment are purportedly what are to be considered. Does anyone really think that the QEs were motivated solely by those factors?

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