But, as the degree of fiscal drag and other headwinds lessen, the tug-of-war should begin to shift in favor of higher growth. Absent additional fiscal restraint, a further tightening of financial conditions, or some adverse external shock, I expect the economy to grow a bit faster in 2014.We have a Keynesian on the Fed! How does Dudley explain the recent spat of healthy growth news in the face of sequester? He has no explanation, and none will be forthcoming from the guy. He will not vote to taper until his favorite programs are funded.
For example, consider university research spending that depends, in part, on federal grants. As the grant budget falls under sequestration, this will eventually squeeze university budgets over time and likely lead to additional belt-tightening.
He likes university subsidies, so he votes to print money for his favorite projects. Who elected this idiot? This is Yellen in spades, Yellen plans to yell at us until her favorite federal programs are funded. Unfortunately for these two nuts, all they produce is a huge friggen stock bubble which will crash. When we write our epitath we will say, 'Yellen destroyed the economy because her favorite programs weren't funded'
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