It could have been written by Russia’s politburo. It’s loaded with statements like this one: “The Committee expects that economic conditions will evolve in a manner that will warrant only gradual increases in the federal funds rate; the federal funds rate is likely to remain, for some time, below levels that are expected to prevail in the longer run.”
We’ll spare you the rest of the policy statement, which can be summed up as follows: “Blah, blah, blah.” If the Fed were being honest, here’s what the latest policy statement would have said:
Well, that was a disaster.
We’ve been hearing for years that it was time to raise interest rates. Virtually every economist on the planet, not to mention all of the journalists who think they understand the economy, had been predicting that the Fed would raise interest rates in December. (more…)