By Michael Pento
The incredibly confused Fed is desperately trying to maintain its unprecedented control over the most important price signal in our economy, which is the level of interest rates. But it is failing. Mr. Bernanke not only doesn’t control long-term interest rates (as he now believes) but he is also unaware that the economy has become completely addicted to Fed’s level of credit creation and its ability to create asset bubbles.
Some on the Fed contend inflation is too low, while others want to begin tapering immediately.
From the Fed’s Statement released this week: “The Committee sees the downside risks to the outlook for the economy and the labor market as having diminished since the fall.”
Mr. Bernanke also stated that if the economic conditions continue to improve, the Fed would begin tapering QE in the fall and could terminate the program by mid-2014. However, that very same day, the Federal Reserve also trimmed its growth forecast for 2013 and slashed its inflationRead More »from Pento: Baffled Bernanke Confuses Markets