Wednesday, September 13, 2017

It's not a coincidence

At Bloomberg: Act or Wait? Fed Debate Heats Up After Inflation Misses Target by Matthew Boesler, 13 Sept 2017.

The opening words:

Former Federal Reserve Chairman Alan Greenspan, in year nine of a U.S. economic expansion, conceded in 1999 that patience was sometimes a better policy than his doctrine of preemptive interest-rate moves because “the future at times can be too opaque to penetrate.”

For some Fed officials, these days look like one of those times to wait for clarity.

And this:

“The conventional wisdom did not work in the 1990s and it is not working now,” said Allen Sinai, chief executive officer of Decision Economics in New York.

The 1990s and now. It's not a coincidence.

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