"Nowhere to go but up" survives because the Fed refuses to be honest about its assessment of the output gap

Source: Cobden Centre
by Jeffrey P Snider

"The Federal Reserve under Ben Bernanke committed several unforgivable mistakes during his tumultuous tenure, but cumulatively they could be easily summarized as “they really don’t know what they are doing.” Time and again whoever followed monetary policy and the conventions built upon it were led either off a cliff or somewhere just less dramatic. Federal Reserve actions are at best a reaction to what already occurs, and most often just plain irrelevant. Yet for all the mountains of evidence establishing just that sort of relationship, it remains 1999 for so many, especially those in the media." (04/05/17)