Fed Following
06/18/2014 | | econ70, Economic forecasting, economist on radio, economist on TV, eisenberg and economics, Eisenberg and housing economics, Eisenberg and public speaking, Elliot eisenberg, Fed policy, funniest economist, funny housing economist, Graphsandlaughs, graphsandlaughs and eisenberg, housing sales, Janet yellen, MLS, mortgage banking, Multiple listing service, politics and economics, Public speaking economist, www.econ70.com
At today’s press conference, Fed Chairwoman Yellen did away with forward guidance. Instead, she suggested that the Fed will rely on an array of lagging economic indicators to set policy. She is signaling that the Fed will keep interest rates exceptionally low and allow inflation to systematically exceed 2%; appropriately dovish policies. Separately, her suggestion that the stock market is not elevated will inevitably send it higher.