Sunday, August 21, 2016

Years of Federal Reserve Missteps
Have Fueled Disillusion
"Adoration and confidence in central banks, finance and politicians as they enabled and rode the debt bubble up was misplaced and undeserved. Now buried under the debt weight of our past consumption, rock bottom rates and yields are serving to decrease rather than increase demand. Monetary planners are at a loss, because they only ever had the one lever–short-term policy rates– and it’s now harming not helping growth. Moreover, the majority seems to be aware of that now, and confidence is central planners is in secular decline. Jon Hilsenrath of the Wall Street Journal lays out the demise of Fed-faith today in Years of Fed missteps have fueled disillusion with the economy and Washington. Since Hilsenrath has, since at least Bernanke days, been considered the Fed’s press mouthpiece, one wonders if this article marks the dawn of a new era: one where the Fed says they have done all they can and passes the stimulus stick back to governments and business."
- Danielle Park
link here to the commentary
LINK HERE to the referenced article

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