A Benjamin Cole post
The Atlanta Fed, usually a quiescent bunch, just X’ed out growth in its Q1 forecast GDPNow index.
Of course, headline inflation is at 0% and rates on 10-year Treasuries are skidding below 2%. Hiring is seizing up, the Dow is stutter-stepping, and unit labor costs have not risen in six years.
And the Fed?
The Fed is endlessly jibber-jabbering about raising rates and getting back to normal.
I have some advice for the Fed: From the clues I detect, raising rates will not get you back to normal. My other advice to the Fed is to send reconnaissance teams to Europe and Japan. It you think now is not normal, wait ‘till you see what comes next.
Back to The Future: QE
I have been tooting all along that the Fed should stay with QE, adding my kazoo to the cacophonic, conductor-less global orchestra of macroeconomic e-pundits.
But, perhaps it wouldn’t matter if I had Gabriel’s Trumpet, and not a kazoo.
I suspect Janet Yellen is marching to the Fed’s own drum, and the beat goes on. And on. And on. And on