High pressure economy.

Silverthorn · Oct 17, 2016

noticed this on the SMH live blog at 9.37. doesn't sound too hawkish, always felt the Fed would be behind the curve on inflation and keep pushing till they get it.

Most noteworthy from Friday after the close of the local market was a speech by Janet Yellen, in which she suggested the Federal Reserve may need to run a "high-pressure economy" to reverse damage from the 2008-09 crisis.

Though not addressing interest rates or immediate policy concerns directly, Yellen laid out the deepening concern at the Fed that US economic potential is slipping and aggressive steps may be needed to rebuild it.

Yellen, in a lunch address to a conference of policymakers and top academics in Boston, said the question was whether that damage can be undone "by temporarily running a 'high-pressure economy,' with robust aggregate demand and a tight labor market."

"One can certainly identify plausible ways in which this might occur," she said.

Looking for policies that would lower unemployment further and boost consumption, even at the risk of higher inflation, could convince businesses to invest, improve confidence, and bring even more workers into the economy.
Click to expand...

http://www.smh.com.au/business/markets-live/markets-live-asx-on-shifty-ground-20161016-gs3pzu.html

SteveS · Oct 17, 2016

".......to reverse damage from the 2008-09 crisis."

So the current problems all relate to that event and none of the actions taken, or borrowing/spending, since then is to blame.

If you say so Janet.

James · Oct 17, 2016

Either the Fed's bluffing for a temporary pre-election price boost in stocks, or QE for the people (helicopter money) is coming.

Log in or Sign up

High pressure economy.

Silverthorn Well-Known Member

SteveS Member

James Member

Share This Page

Log in or Sign up

High pressure economy.

Silverthorn Well-Known Member

SteveS Member

James Member

Share This Page

Useful Searches