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Fed’s expansionary policy is not going achieve projected unemployment levels – Sober Look

This is a syndicated repost published with the permission of Sober Look. To view original, click here. Opinions herein are not those of the Wall Street Examiner or Lee Adler. Reposting does not imply endorsement. The information presented is for educational or entertainment purposes and is not individual investment advice.

CS put together an updated chart of the Fed’s unemployment projections (discussed here). The expectations for the “longer run” unemployment rate continue to be unrealistic and are based on credit driven excesses of the pre-crisis era. Someone needs to explain to the FOMC forecasters that a structural change in US employment (discussed here) had raised the level of “natural” unemployment rate. Expansionary policy, no matter how aggressive, is simply not going to produce the desired results.

Source: CS

 

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