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I Love Janet Yellen
I was reading some of her remarks over at Calculated Risk:
http://www.calculatedriskblog.com/2015/09/yellen-anticipates-raising-fed-funds.html
I was going to point to one sentence, because it made me chuckle, but then I realized the sentence right after it was _even better_.
"Beyond these considerations, a modest decline in the unemployment rate below its long-run level for a time would, by increasing resource utilization, also have the benefit of speeding the return to 2 percent inflation. Finally, albeit more speculatively, such an environment might help reverse some of the significant supply-side damage that appears to have occurred in recent years, thereby improving Americans' standard of living."
Hey, we can't seem to get off zero. Maybe if everyone had a job that would help and, ya know, a little inflation never killed anyone. Sing it!
I love the second sentence even more, tho. "Don't act like those depression era peeps. You need to consume more. Life is short. Enjoy it."
Right on all counts.
I am serious.
ETA: I can't help but wonder if Yellen is out loudly saying they will probably still do the first rate rise this calendar year in part because the markets reacted so negatively to the lack of a rise in September, on some sort of theory that, if the rate doesn't rise, then the world must truly be coming to an end! Which is a bullshit theory on the face of it, but whatev.
http://www.calculatedriskblog.com/2015/09/yellen-anticipates-raising-fed-funds.html
I was going to point to one sentence, because it made me chuckle, but then I realized the sentence right after it was _even better_.
"Beyond these considerations, a modest decline in the unemployment rate below its long-run level for a time would, by increasing resource utilization, also have the benefit of speeding the return to 2 percent inflation. Finally, albeit more speculatively, such an environment might help reverse some of the significant supply-side damage that appears to have occurred in recent years, thereby improving Americans' standard of living."
Hey, we can't seem to get off zero. Maybe if everyone had a job that would help and, ya know, a little inflation never killed anyone. Sing it!
I love the second sentence even more, tho. "Don't act like those depression era peeps. You need to consume more. Life is short. Enjoy it."
Right on all counts.
I am serious.
ETA: I can't help but wonder if Yellen is out loudly saying they will probably still do the first rate rise this calendar year in part because the markets reacted so negatively to the lack of a rise in September, on some sort of theory that, if the rate doesn't rise, then the world must truly be coming to an end! Which is a bullshit theory on the face of it, but whatev.