A Regular Nostradamus
Currently, we don’t think it will get to 10 percent. Our current number is somewhere in the 9s. |
Last week it came in over 10%, a new multi-decade high, with most credible observers saying it will head at least a bit higher before topping out. Add it to the long list of bad predictions by Bernanke, just some of which I pointed out near the end of this article.
Look, these screw-ups might be more comical than scary, except 1) the Fed is currently engaged in the largest monetary experiment in history, 2) monetary policy by nature depends on forecasts, making predictive ability an essential part of the job description for any Fed chairman, and 3) businesses and individuals rely on the Fed's economic outlook when making strategic and investment decisions, as do federal/state/local governments planning fiscal and other policies. At this point there are only two possible explanations. Either Bernanke's economic models are flawed to the point of uselessness or he simply says whatever is expedient, politically or for the financial markets, on any given day. Based on his history, I think it's both. And Obama wants to saddle the country with this guy for another four years.