28 February 2011

What Is The Fed Smoking?

The gall of some people:

The economy is unlikely to mount strong enough growth to change the path of monetary policy over coming months, although rising commodity prices argue for increased inflation vigilance, a top Federal Reserve official said Monday.
 “The economic outlook has improved considerably,” and “a wide range of indicators show a broadening and strengthening of demand and production,” Federal Reserve Bank of New York President William Dudley said.

Right.  Unemployment is at 9%, production numbers are still down, shipping numbers are down, and inflation is going up.  Just how is this a precursor to sustained growth?

The simple fact of the matter is that America is going to be feeling pain for a while.  There is no point in denying this reality, especially since doing so will only to foolish and counterproductive policies.

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