Friday, January 29, 2016

Good Timing

The Fed, according to its press releases, is "data driven." Hence the recent "Fed liftoff," which appeared to lift nothing off but a curtain surrounding inept Fed policy, was timed to coincide perfectly with an economy sinking into a quagmire.

Today, the government released 4th quarter 2015 GDP growth of 0.7 percent.  Remember that you have to divide that number to get to the actual anemic rate of 0.17 percent.  That's within the margin of error of a negative growth rate.  Meanwhile the Fed, according to it's mid-December policy statements is concerned about a strong economy and growing inflation.

So this is "data-driven" Fed policy -- attempting to raise rates as the economy falls off the cliff.  Thank goodness Fed policy is completely ineffective or we would really have something to worry about. 

What a sideshow!

No comments: