Tuesday, June 19, 2012

Policy changes at the Fed


The Federal Reserve's inflation target

Shiny, new, unopened & unused

When Federal Reserve officials meet this week, they will despondently confront an economy yet again falling short. Employment growth has flagged. GDP probably grew less than 2% (annualized) in the first half of this year; clouds from Europe, Asia and America's own "fiscal cliff" darken the second half. The Federal Open Market Committee's full year forecast of 2.4% to 2.9% looks out of reach.

Comment: To say that Fed officials are confused would be too generous. 

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