Wednesday, April 27, 2011

The Fed chair is happy to report... this wonderful gathering of reporters, that there are no material changes to anything the Fed has previously said or done. Thank you. That will be all.

What did we expect for his first official press conference? Another weapon in the inflations expectations arsenal, and a blunt, unpredictable one at that.

No wage inflation, loan activity dismal, banks still teetering, this is no time to raise interest rates. (ignoring the fact that the Rate channel of price and monetary signaling is hopelessly broken at the moment.)

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