Here is your link.
From the article:
“The economy may be at greater risk of inflation than the conventional wisdom indicates,” Plosser said in a speech yesterday in New York. “While inflation expectations appear to remain anchored, we should not become sanguine about our credibility. It can be easily lost.”Did he just say that it's going to be worse than the conventional wisdom indicates!!? If so then we are doomed!! I thought conventional wisdom said we were going to have really bad inflation. You'd better hold on to your wallet. You know it will be bad when the Fed President admits that things aren't going peachy.
Did he just say that our credibility can be easily lost!!? Do we have any credibility left? Did I miss something? I thought I just read about India and China wanting a different reserve currency. Doesn't that mean we have a slight credibility problem, or are we talking about something else?
From the article:
The economy is probably not strong enough and not ready for increasing interest rates? Are you serious? Who could have guessed?
Fed officials will need to raise the U.S. benchmark interest rate and reduce the central bank’s balance sheet when financial and housing markets improve, Plosser said. The Federal Open Market Committee is committed to price stability and will act in a “prompt way” to ensure it, he said.
“The economy is probably not strong enough and not ready for increasing” the main rate, Plosser said after his speech.
Minutes of policy makers’ April 28-29 meeting in Washington suggest they’re not convinced that recent signs of economic stabilization will remain in place. Plosser echoed that uncertainty yesterday, saying the U.S. may grow below potential “for some time” as unemployment rises and the shock to financial markets persists.
The U.S. may grow below potential "for some time"!!?
Policy makers left open the possibility of increasing the amount of assets they’ll purchase to revive the economy, beyond the $1.75 trillion already committedI like the term "committed". It sounds like someone is starting to recognize just how criminal the "bailouts" really are.
They are also forecasting a deeper U.S. contraction than they expected three months earlier, with a 9 percent or higher unemployment rate through the end of 2010That "9 percent or higher unemployment rate" means a real unemployment rate of what, 20% or higher?
Things don't look good to me. I'll admit to being a pessimist on this. I don't think we're on the way to recovery, yet. I think the stock market is going to go down again. We'll see more and bigger layoffs and more companies going out of business.
I think the worst of all this is that the federal government will not want to let "a serious crisis go to waste" and they will use this as an opportunity to create more and bigger and more expensive wealth transfer programs to saddle our grandchildren with. If they can pass enough stuff that costs enough they might just convince foreign debt holders that the USA can't or won't pay it's debts. Then we'll really be in trouble.
Like I said before, hold on tight to your wallets. Better yet, hide them.