I don't know about others, but when I see these types of interviews, I waffle between cringing and biting at the bit to ask a question. For example, when they say that QE2 was successful because it increased inflation, I want to follow up with the comment that unemployment is still above 9% and consumer confidence is plummeting! How can they say it worked? How can they be rationally talking about more of the same? Are they at all cognizant of the employment picture?
Then they go on and on about Fed forecasts and admit that they have been horrible. Their response "Wall Street forecasts have also been poor." So this is how we make policy? This is the basis of how they jerk around the price of money and create uncertainty in the business sector?
As you watch, ask yourself if they are aware of how bad the employment situation is. Over half of those out of work today have been unemployed for a long time. Furthermore, unemployment benefits are on the verge of being extended for a much longer time. And these former Fed officials talk as if we are in the economic environment of the 1980s.
Source: Wall Street Journal.
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