Throw away the tea leaves and stop parsing what Janet Yellen said last week. The Fed is not going to surprise you with a rate increase at Memorial, Labor, Thanksgiving or Christmas Day. You have nothing to worry about until next year. Late next year, at that. Capisce? Now calm the fuck down. Read more »
For years, the Fed’s been waiting for unemployment to get under 6.5%, so that it can stop offering money for free. This has taken somewhat longer than the central bank likely expected when the threshold was set, and now, the man who came up with the idea wants to make sure it doesn’t make the same mistake again.
The “cut rates when unemployment drops below 6.5% if inflation hasn’t gotten over 2.5%” policy is apparently called the “Evans rule” for Chicago Fed President Charles Evans. And while Paul Volcker plans to use his remaining days defending the regulation that bears his name, Evans isn’t eager to see a sequel. Read more »
Weaker-willed men (and women?) may say the Fed is tapering too much. That the economy is still vulnerable and in need of stimulation. Philly Fed President Charles Plosser knows better: The problem is not too much tapering but too little, and he is ready to take things a little closer to the scalp. Read more »
And what fun it’s been, even if we don’t remember it quite as fondly as the go-go days of Alan Greenspan. And since we’ll be without a Fed chairman or -woman this weekend, you’ll have plenty of time to reflect on the bearded sage and his place in history, perhaps with whiskey and a Miller High Life chaser. Read more »