I repeat, the Fed creates a boom-bust cycle and we are in the boom phase.
The idea that the Fed has "run out of bullets" makes no sense from an Austrian School business cycle theory perspective. The idea that the Fed has to keep the Fed funds rate at a target range of 0.0% to 0.25% forever is absurd.
Here is Jeffry Bartash discussing one of the indicators that reflects the current boom status of the economy:
The last time the number of Americans applying for unemployment benefits was averaging this low, Richard Nixon was president.
Initial jobless claims in the period running from Sept 19 to Sept. 26 rose by 10,000 to a seasonally adjusted 277,000, the Labor Department said Thursday.
Although that’s the highest of new claims in a month, the weekly average in 2015 is now the lowest since the early 1970s. The level of new claims sank below 300,000 in early March and has remained there for 30 straight weeks, a feat last accomplished in 1973, when the nation’s working population was 40% smaller.
The average of initial claims over the past month fell by 1,000 to 270,750, also the lowest level since 1973, the government said. The four-week average smooths out sharp fluctuations in the more volatile weekly report and is seen as a more accurate predictor of labor-market trends.
The small number of people losing their jobs each week reflects steady improvement in the U.S. labor market over the past few years that has driven the unemployment rate down to 5.1%.
This is not to say that things won't end badly. I expect a surprise bout of accelerating price inflation, for one, but the view that holds there are no boom phases just doesn't fit the facts.