Former Fed Governor Lyle Gramley just told Bloomberg News that the economy is improving and so the Fed isn't going to have to add more stimulus (After QE2).
He is right about the economy, which means he must be a pretty good data watcher. The bulls on the economy still remain few, but he also sees no uptick in inflation and doesn't think unemployment will drop to more than 9%.
This means he is also a Keynesian and outside of being a good data watcher, he is clueless about the economy. Inflation is headed to double-digit levels given the amount of money Bernanke is printing and the declining demand to hold cash. Further, as unemployment insurance runs out for 99ers and Bernanke prints money, hiring will start to pick up in the capital goods sector of the economy.
But as a former Fed official and Keynesian, Gramley getting 1 out of 3, at this early stage, isn't bad.
Here's the clip.
(Thanks to M)
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