Fed Gov: "We Are Awesome"
From a presentation by Janet Yellin (of the San Francisco Fed) on June 30 to the Commonwealth Club of California,
I will be the first to say that it is always difficult to get monetary policy just right. But the Fed's analytical prowess is top-notch and our forecasting record is second to none.
The same Fed that thought there was no housing bubble? Second to none? What about all those Austrian economists who identified the bubble?
But Yellen didn't stop there. She followed up with:
The FOMC is committed to price stability and has a solid track record in achieving it.
Really? The same Fed that presided over a 90% depreciation in the purchasing power of the dollar?
And finally, she finishes up with:
With respect to our tool kit, we certainly have the means to unwind the stimulus when the time is right.
See my thoughts on that here.
Comments (13)
Marcus
Is anyone surprise by this statements ? anyone ?
Published: September 2, 2009 6:00 PM
For Freedom's Sake
Amazing arrogance! Yellin needs to read "Knowledge and Decisions" by Thomas Sowell. The Proverbs say "pride comes before a fall."
Published: September 2, 2009 6:03 PM
Walt D.
I'm sure Dr. Gideon Gono feels exactly the same way about his performance as head of the Zimbabwe Fed.
Published: September 2, 2009 6:28 PM
Sean
Interesting, perhaps this is the evolution of politics we're witnessing from Miss Yellen. The typical political response to complete failure through negligence and incompetency is to shift blame, either to the opposing party or to the free-market. Yellen has one-upped this approach by simply presenting it as a success and taking the credit for that success. Too-shay Miss Yellen, Too-shay.
Published: September 2, 2009 8:27 PM
Sean
Interesting, perhaps this is the evolution of politics in America we're witnessing from Miss Yellen. The typical political response to complete failure through negligence and incompetency is to shift blame, either to the opposing party or to the free-market. Yellen has one-upped this approach by simply presenting it as a success and taking the credit for that success. Too-shay Miss Yellen, Too-shay.
Published: September 2, 2009 8:28 PM
'Nuke' Gray
Another example of bad schooling- using 'awesome' in place of 'aweful'!
Published: September 2, 2009 8:39 PM
Steve Hogan
Well, this crew thought "Cash for Clunkers" was a resounding success, too. They're hopeless.
Published: September 2, 2009 8:43 PM
Ohhh Henry
we certainly have the means to unwind the stimulus when the time is right.
"Unwind" = synonym for the verb "to pocket"
Published: September 2, 2009 8:51 PM
Ohhh Henry
P.S. you needn't worry about the reputation of the federal reserve suffering in the face of repeated failures of prediction and broken promises of financial stability. A scapegoat has been found.
"We had everything under control until Charlie Ching Chong here welshed on his derivatives!" is an approximate translation into Schoolyardese of what they are about to announce.
It will be the perfect excuse for protectionism, nationalization of industry and a new cold war. If you're lucky.
Spokespersons at Goldman Sachs (GS.N) and UBS (UBSN.VX) declined comment, and media officials at Morgan Stanley (MS.N) and JPMorgan (JPM.N) were not immediately available for comment. All are major global providers of commodity risk management.
LOL
Published: September 2, 2009 9:00 PM
Dec
Yellen is appropriately named, she won't hear the cries of despair from the millions of Americans whose retirement funds have been stolen over the sound of her own incredibly arrogant voice.
Published: September 3, 2009 5:41 AM
EconAndre
Better to be thought a fool than to open your mouth and remove all doubt. The first line of Sowell's "Knowledge and Decisions" says, "Ideas are everywhere, but knowledge is rare."
Published: September 3, 2009 10:59 AM
Walt D.
Its official - the recession is finally over. Boy, that sure took me by surprise. How did we all miss this one?
It must be negative thinking! What we need is more positive thinking:
Repeat after me:
The LA Clippers are awesome.
The New York Mets are awesome.
The Kansas City Chiefs are awesome.
The New York Islanders are awesome.
Published: September 3, 2009 2:15 PM
Matthew
here's a link to the video
http://fora.tv/2009/06/30/A_View_of_the_Economy_from_the_Federal_Reserve
Published: September 4, 2009 2:31 AM