TYBS - Thoughts On The Fed

It's been interesting watching the views on the Fed regarding policy change over the last year and a half. Its views on GDP growth and Fed funds reversed as it followed its trailing indicators. After all, what economic variable moves later than unemployment?

Have a look at the rest of the graphs:

If you have been looking at my Twitter feed, you would know that I am a fan of using the yield curve to target monetary policy. The yield curve does two things moderately well.

• It gives the view of market participants as to

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