Friday, August 11, 2017

Clueless central banker

Inflation has been so low that even if it starts to climb it will not damage the economy,
Fed’s Kashkari added.

“We’ve been around ...a 1.7% [inflation rate]. If inflation starts to climb and we end up at 2.3% or 2.4% or 2.5%, so what,” he said.
Fed’s Kashkari added. 

“We’ve been around ...a 1.7% [inflation rate]. If inflation starts to climb and we end up at 2.3% or 2.4% or 2.5%, so what,” he said.
That extra inflation adds 3/4 of a point onto the ten year which adds about 100 billion additional to the interest charges.  Congress cannot do that without QE help.

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