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Fed is Raising Rates for the Opposite Reasons They Claim
wolfstreet.com / by Larry Kummer /
Look at the Fed’s dashed hopes!
After a year of waffling and flip-flopping, the Fed finally decided to raise rates, a decision that had the surprise of a sunrise. Yet there is a behind-the-curtain drama of clashing hopes and fears by the Fed’s governors and staff.
This conflict does not appear in their statements or press conferences, but in their economic projections. Let’s start with their hope for continued economic growth: the predictions released today for GDP and the fed funds rate…
This paints a mildly optimistic picture. They have abandoned hope of a “take-off” – of growth accelerating above the 2.2% average of this expansion – but still have faith that no recession ends this already old expansion during the next 3 years, or actually ever.
But look at the Fed’s dashed hopes!
In June 2011, the Fed predicted that real GDP growth would peak in 2013 at a booming now unimaginable 3.5% to 4.2%, overheating vs. their hoped-for long-run rate of 2.5% to 2.8%.
The post Fed is Raising Rates for the Opposite Reasons They Claim appeared first on Silver For The People.
Source: http://silveristhenew.com/2015/12/17/fed-is-raising-rates-for-the-opposite-reasons-they-claim/
