Saturday, October 22, 2016

Fed got what it wanted..actual snail track was predicted

"Let's start with what the Fed got right. Internal documents from 2009 and 2010 (now public) reveal that policy makers were largely aiming to return the unemployment rate to 5 percent by the end of 2015 (from nearly 10 percent at the end of 2010). "

" The Fed’s staff expected that this would be associated with inflation rising slowly from near 1 percent to only about 1.5 percent by the end of 2015 "

"..,,. In terms of unemployment and inflation, 
the Fed basically got the recovery it wanted: "

Why did the fed prefer a snailer ? 

And why is this the settling in level ?

" The unemployment rate has been close to 5 percent for the past year, and the Fed’s preferred measure of inflationary pressures is at 1.7 percent."