The purpose was to tag Federal Reserve members’ comments that highlight desperate efforts to rationalize their inane monetary policy in the post-financial crisis era. This past week there were two quotes by Fed members and one by the head of the European Central Bank (ECB) which were highly deserving of the tag. We present them below, with commentary, to help you understand the predicament the Fed and other central banks face.
On September 5, 2017 Fed Governor Lael Brainard stated the following in a speech at the Economic Club of New York:
‘We should be cautious about tightening policy further until we are confident inflation is on track to achieve our target.’ – ‘There is a high premium on guiding inflation back up to target so as to retain space to buffer adverse shocks with conventional policy.’
This post was published at Zero Hedge on Sep 13, 2017.