Originally Posted by Literature
And your recommendation is that someone come in on Jan. 1 and allow the interest rate to naturally flow up to what rate?
I don't know that you can have a specific target, Jensen. You have to let the market make that decision for a while until the data starts to show some overheating. But given the state of our economy we are a long way off from overheating. When we get back to 5% unemployment it's probably time to worry about inflation.
But that's just it. We are not making data-driven decisions. We, we being the Fed, are making stereo-typical, Wall St. benefiting decisions. These economits know the impact of a weak $ and they will claim they have no control over the $, just interest rates. But that is bunk since one directly impacts the other.
How many times have we heard Bernanke now come out and say "we are going to keep rates low until...". First it was into 2012, then 2013, now 2014.
Meanwhile the imapcts of those decisions are burying the everyday Joe.