Saturday, October 22, 2016

And the fed had to make the snail track happen more by konckerlakota

"The Fed was surprised by two aspects of the recovery. The first is that it provided, and continues to provide, a lot more monetary stimulus -- in the form of low interest rates and asset purchases -- than it expected back in 2010. "

The un stimulated track would have been worse !

"As Fed vice-chair Stan Fischer described in a recent speech, economists have yet to understand why,"

 but the fed got it's predicted outcome path 

" The second surprise is much more troubling: Growth over the past six or seven years has been much slower than the Fed expected. "

"It’s important to emphasize that the slow growth doesn’t mean that monetary policy hasn't worked: Like I said, the Fed has met its inflation and unemployment objectives. "

"What's strange is that success in achieving those goals has been associated with such slow growth."