Yesterday, Fed chairman Ben Bernanke answered questions at the University of Michigan. NYT reports on one exchange:
Why did the Fed decide in December to stop predicting an end date for low interest rates, and instead to describe its economic objectives?
“We gave a date which was just our best guess, and then it changed a couple of times,” Mr. Bernanke said.
How is this anything other than Bernanke admitting that the Fed is clueless about trends in the economy and that it has given up pretending it knows?
Source: Economic Policy Journal.