Wednesday, June 6, 2012

Who Said the Fed Never Gets Anything Right?

Federal Reserve vice-chairman, Janet Yellen, delivered a speech this evening before the Boston Economic Club Dinner, Boston, Massachusetts.

In her remarks, she gave a huge backslap to the Fed and said (my bold) and I am not making this up:
As a result, the current slump has not generated the downward spiral of falling expected and actual inflation that a simple accelerationist model of inflation might have predicted. Indeed, keeping inflation expectations from declining has been an important success of monetary policy over the past few years.
Well, what a success! Congratulations to the Fed for spooking the American public about price inflation.  

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