They say that whatever can go wrong will. Since I have a plane to catch tomorrow evening fate seems to have saved it up for me just for today. It’s been mostly little things until my 18 year-old clothes washer decided to die with many of my favorite tops in it and a load of jeans yet to go, and I don’t believe I’ve ever seen a laundromat around. Fortunately, I don’t get picked up until midafternoon, which gives me time to get some new stuff to fill in with the things that I don’t usually wear very much (they probably should have been donated). And my husband is now very disappointed. He thought he was going to get to sit around while I am gone. J
As I was waiting for the wash cycle that never completed, I had a chance to watch Janet Yellen’s Congressional testimony. I was surprised to hear questions asked of her about the natural rate and the wisdom of raising rates now, about IoR being a slush fund for banks, and about whether failure to respond to the financial crisis with a rate cut at the September 2008 FOMC meeting was a mistake, with many of the questions being asked in reference to Bernanke’s book. She looked like a deer in the headlights as brushed them under the rug, saying she would have to read Bernanke’s book and get back to them with a response.
With so much talk about Bernanke’s book I’m feeling a bit sheepish. Apparently, things don’t always need to be spelled out in the boldness of black and white for them to be understood, or at least the Republicans on the panel have finally decided to listen. Even Ted Cruz who lobbed the question about the September 2008 FOMC meeting sounded reasonable.
I wonder why the Republicans are now dovish and Democrats are the ones asking about savers. Would it not benefit Republicans for Yellen and crew to cause a recession next year, which the chances of it are certainly higher than yesterday? It would be nice to think that isn’t just part of political calculus… But Ted Cruz?? There has to be something in it for him and certainly prodding Yellen to loosen up a bit, were it to be broad public knowledge, would be a liability with the base because whatever he might think the right thing to do, they wouldn’t understand.
I suppose I’ll have to ponder that point for a while.