by Andy Hoffman, Miles Franklin:
As expected, Whirlybird Janet’s congressional testimony yesterday gibed exactly with what the Fed has said since last month’s FOMC meeting. Also as (we at the Miles Franklin Blog) expected, she made a mockery of the concept of Fed “omniscience.” To wit, recall the Fed’s utterly miserable track record of economic forecasting – always on the high side, in large part due to its own, horribly destructive policies. In “Yellen’s Last Stand” – following the aforementioned, June 18th meeting – we discussed the reduction of the Fed’s 2014 GDP growth estimate from 2.9% to 2.2%, and posted this ugly, self-explanatory chart of similar failure from the entire Wall Street institution, over the past decade. And just think, what it all-time low GDP “deflators” weren’t used!
Following yesterday’s testimony, in which Yellen espoused “confidence” in economic growth – while caveating every point in a pitiful effort to hedge future failures – none other than the vampire squid itself, Goldman Sachs, claimed her Q&A answers were slightly more “hawkish” in tone. Pure gibberish, as the best propaganda Goldman could proffer was that two of the nine FOMC members expect the first rate hike in 2015, versus three last month. LOL.
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