Why is the Fed tapering when virtually everyone with a functioning brain cell knows the economy is just barely limping by? Why is the Fed saying they’ll need to see poor data to end tapering, when we’ve had gobs of bad data and they’re explaining it away?
by Bob Rinear
The International Forecaster
This week we saw something quite remarkable happen. It didn’t seem remarkable to “too many” people, but indeed it was. So, just what was this thing that I categorize as being so remarkable?? Despite Janet Yellen telling Congress that the Fed was going to continue its tapering the market gave her a big pass because she mentioned that “if the data were to turn unfavorable” then of course there’d be reason to pause the cutting.
Okay, so what’s the issue with that, right? Well, here’s the issue with that. When the Fed’s did the first taper, did the data really suggest a good strong recovery? Hell no. Mortgage applications were crashing, Housing sales fell like a rock, unimaginable amount of people were falling out of the job market, Obama care was causing all manner of troubles, and on and on. Yet the Fed tapered.
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