Tuesday, September 15, 2009

Is Janet Yellen Sleeping at Fed Meetings?

The Federal Reserve is likely to begin tightening its monetary policy only when the currently high unemployment rate begins to fall significantly and as inflation picks up, San Francisco Federal Reserve President Janet Yellen said Monday.

Speaking before a business group in San Francisco, Yellen said the Fed's main goals are for a U.S. unemployment rate of 5% and an inflation rate of 2%, but that the central bank would likely tighten its monetary policy before those goals were reached.

"Our foot is down on the stimulus pedal" as far as it can go to help stimulate economic growth, Yellen said.

Ah, Janet, don't look now, but M2 hasn't expanded since early February.

Janet, do you ever get the feeling Ben Bernanke isn't paying attention when you talk at FOMC meetings?

2 comments:

  1. "... and an inflation rate of 2%, ..."

    Am I the only person that sees a problem with this "goal"?

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  2. the Fed's main goals are for a U.S. unemployment rate of 5%

    And am I the only person that sees a problem with THIS "goal"?

    So, somehow we should all die of bleeding hearts if 6% of this country is structurally unemployed, by 5% is, what, the 'cost of doing business' in America? Do these people not vote? Do they not pay taxes? Do they not count?

    This is represenative govt? What do you constitutional representative democracy-fetishists have to say about this?

    ReplyDelete