The whole thing is like a bad economic dream. The trouble started with cranky Bernanke. He was so anxious to see "his" economy turn up, that in desperation he started to believe his own wishes. Believing wrongly that the economy was improving, Bernanke tapered his QE by ten billion a month. The US economy remained moribund. Bernanke tapered a second time (another ten billion a month) just before he left office. He then turned over the Fed to poor Janet Yellen.
With the economy still dead in the water, Yellen is in an extremely difficult spot. Of course she could open the spigots even wider in an effort to goose the staggering US economy. But if she did that it would be an admission to all the world that the US economy is sagging. Furthermore, if the Fed reversed course it would be an admission for all the world to know ... Log in or subscribe to continue reading.
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