poopiepoopy wrote:PigBloodCake wrote:http://www.federalreserve.gov/newsevents/speech/yellen20120411a.htm
"Given this baseline, one can then employ the dynamics of one of the Federal Reserve's economic models, the FRB/US model, to solve for the optimal funds rate path subject to a particular loss function.11 Such a policy involves keeping the funds rate close to zero until late 2015."
This is just peachy. Fed is one of the (if not THE) major culprit of the current speculative markets around the world as well as inflation on the essentials (i.e. gas, food, etc) and now they want to keep the damn rate near 0% until '15?
Why not just follow Japan and keep it low FOREVER
Inflation rates don't include oil prices (gas) or food at least in the US it isn't counted. So the Fed doesn't consider the average mans needs like getting to work or feeding their family as part of inflation. It can only consider the aspects that effect the highest level of investors thereby insuring that everyone wins. Even if that means everyone including your baby needs to work to provide interest to their investments: YOUR LABOR.
Of course not. Bernokio didn't wanna expose himself as the biggest fraud in the world (and hence the exclusion of food and gas prices from the inflation target).
All it takes is a majority of FOMC members to finally wake up and listen to Hoenig (who is no longer a voting member) and Fisher and the entire world will tank.
In the meantime, don't be surprised if there is a QE3 (but I wouldn't bet on it).