Wednesday, September 21, 2016

Politics determines when, if ever, the 2.4 T borrowed will be repaid

Yellen:
"In order to insulate monetary policy from short-term political pressures and I can say, emphatically that partisan politics plays no role in our decisions about the appropriate stance of monetary policy....  We do not discuss politics at our meetings and we do not take politics into account in our decisions."

The Fed has to keep Congress solvent, so they politic all the time, behind the scenes, in statements, and the rest.  It is either politic or get Congress out of the currency business. 

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