Fed´s usefulness is waning

According to Bernanke:

In general, with policymakers sounding more agnostic and increasingly disinclined to provide clear guidance, Fed-watchers will see less benefit in parsing statements and speeches and more from paying close attention to the incoming data. Ultimately, the data will inform us not only about the economy’s near-term performance, but also about the key parameters—like y*, u*, and r*—that the FOMC sees as determining that performance over the longer term.

 

3 thoughts on “Fed´s usefulness is waning

  1. Key word is “Ultimately”. It reminds me of the joke, “Is everything alright? No? Then it must not be the end. Because everything will be alright in the end.”
    I’m still trying to figure out how, and in what world, will the Fed funds rate ever get to 3%? Does a 10 year T paying 1.5% say nothing to these people?
    I’m ripping my hair out.

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