Because not much change occurred in the economy between the March and April FOMC meetings, there was not much new in the minutes from the April get together and why the April written statement wasn’t much different than in March. With respect to doing more, “several members indicated that additional monetary policy accommodation could be necessary if the economy recovery lost momentum or the downside risks to the forecast became great enough.” While non voting members attend the meeting, 8 of the 10 voting members are big time doves so this comment shouldn’t be a surprise. What is a surprise and also a shame is there never seems to be a discussion amongst Fed members of asking whether 1)Has Fed policy gone way too far already?, 2)Why hasn’t anything they’ve done worked on a sustainable basis? and 3)maybe Fed policy is an actual impediment to a better economy. The assumption remains in most of their minds that easing is good and the more of it even better to boost economic activity without any discussion of the negative consequences that in my opinion so far outweighs the perceived benefits. I sing with my awful voice to Bernanke, “If you wanna make the world a better place, take a look at yourself, and then make a change.”

Category: MacroNotes

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

3 Responses to “FOMC get together”

  1. Rich in NJ says:

    Fiscal policy incentives would be far preferable, but the Republican House is completely dysfunctional.

  2. carleric says:

    As is the Democratic Senate… paraphrase Mencken “Noone ever went broke underestimating the intelligence of the US Congress”….but, we need less not more fiscal/monetary meddling bY unsucessful lawyers masquerading as public servants.

  3. Further fiscal/monetary policy accommodation would appear to be unnecessary unless the August debt ceiling talks or taxmageddon negotiations go awry. The TRI gauges GDP could have been as high as 3.7% in April, will dip to 1.3% in August but should surge to over 4% by February. In short, with the present degree of deficit budgeting, the economy appears to have attained sufficient critical mass for sustained growth rates.

    The present trajectory implies the unemployment rate will dip below 7% in 2013Q3, inducing the FOMC to commence rate increases in August … not “in late 2014″.

    TRI chart: