{"id":182452,"date":"2015-09-17T20:13:00","date_gmt":"2015-09-18T01:13:00","guid":{"rendered":"https:\/\/www.panix.com\/~msaroff\/40years\/2015\/09\/17\/the-fed-does-the-right-thing-for-reasons-that-are-totally-opaque-to-me\/"},"modified":"2015-09-17T20:13:00","modified_gmt":"2015-09-18T01:13:00","slug":"the-fed-does-the-right-thing-for-reasons-that-are-totally-opaque-to-me","status":"publish","type":"post","link":"https:\/\/www.panix.com\/~msaroff\/40years\/2015\/09\/17\/the-fed-does-the-right-thing-for-reasons-that-are-totally-opaque-to-me\/","title":{"rendered":"The Fed Does the Right Thing for Reasons that Are Totally Opaque to Me"},"content":{"rendered":"

For some reason, central bankers are always too quick to raise interest rates.<\/p>\n

It’s some sort of bizarre monetary dick swinging.<\/p>\n

Everyone predicted that the Federal Reserve would raise interest rates, even though the workforce participation rate is the lowest that it has been since 1978<\/a>.<\/p>\n

It turns out that “everyone” was wrong<\/a>:<\/p>\n

One of the longest economic expansions in American history remains so fragile that the Federal Reserve said on Thursday it would postpone any retreat from its stimulus campaign.<\/span>

<\/span>Janet L. Yellen, the Fed\u2019s chairwoman, described the decision as a close call and said the central bank still expected to raise interest rates later this year. The Fed has kept its benchmark interest rate close to zero since late 2008, when the nation\u2019s economy was at the depths of crisis.<\/span>

<\/span>\u201cThe recovery from the Great Recession has advanced sufficiently far and domestic spending has been sufficiently robust that an argument can be made for a rise in interest rates at this time,\u201d Ms. Yellen said at a news conference.<\/span>

<\/span>But, she said, \u201cheightened uncertainties abroad,\u201d including the Chinese economy\u2019s weakness, had persuaded the bank to wait at least a few more weeks for fresh data that might \u201cbolster its confidence\u201d in continued growth.<\/span>

<\/span>The Fed\u2019s decision, announced after a two-day meeting of its policy-making committee, had been widely expected by investors in recent weeks.<\/span><\/p><\/blockquote>\n

I’d try to explain this,but I do not have a f%$#ing clue as to why this happened, and if I did try to figure this out, all that I would get is a headache.<\/p>\n","protected":false},"excerpt":{"rendered":"

For some reason, central bankers are always too quick to raise interest rates. It’s some sort of bizarre monetary dick swinging. Everyone predicted that the Federal Reserve would raise interest rates, even though the workforce participation rate is the lowest that it has been since 1978. It turns out that “everyone” was wrong: One of …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[975,1004,985],"tags":[],"class_list":["post-182452","post","type-post","status-publish","format-standard","hentry","category-employment","category-finance","category-regulation"],"_links":{"self":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/182452"}],"collection":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/comments?post=182452"}],"version-history":[{"count":0,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/182452\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/media?parent=182452"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/categories?post=182452"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/tags?post=182452"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}