“The world can appear to be so empty if one thinks only of mountains, rivers, and even cities; but to know someone here and there who thinks and feels along with us, and though distant, is close to us in kindred spirit – this makes the earth seem like a peopled garden.”
Johann Wolfgang von Goethe
Too bad that the Fed’s policies are turning most of the real economy into a barren parking lot.
Janet Yellen was out speaking today, trying to salvage some shred of the Fed’s credibility after that awful Non-Fulltime Payrolls Report last week.
But despite the happy talk it just did not work.
Maybe people are listening to what the Fed heads are saying, but looking at the Fed’s own data and seeing things like this chart on Labor Market Conditions on the right.
As you may recall, the Fed will be meeting FOMC style next Tuesday and Wednesday. It is unlikely that they can raise rates by even 25 bp and ascribe that to economic necessity. If they cite their own policy needs then maybe. How can they lower rates again, given that negative rates are like some cruel prank gone viral, and they are still stuck near ZIRP?
This post was published at Jesses Crossroads Cafe on 06 JUNE 2016.
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