Fed inflation target
so we're supposed to be excited that with 29M people on unemployment, the Fed says it won't raise rates even if unemployment falls so low that inflation rises above 2%?
BTW, the Phillips Curve is a relic that needs to be thrown on the junkpile anyway.
Re: Fed inflation target
0% interest into a long horizon means that the economy is #### and is expected to be for a long time.
BTW, ultra low rates are the backdrop to the GFC. Yes, there was deregulation and regulatory capture, but the lifeblood of it was the "search for yield" which made anything that returned 25bps more very attractive. You gotta sell the bonds at the end of the pipeline or nothing else works.
We're heading toward a lot of zombie companies and financial instruments that will be kept on life support by cheap money.
It isn't exactly a free market but it is sort of capitalism in that I don't know where the weak link is where Wall Street will figure out the next big scam but I can guarantee you they will.