One of these days, when I write a post to express my thought that perhaps it’s safe to not watch every move at the Fed and go back life as it was before the Great Recession, I will have nailed it. I have written two such posts prematurely declaring it to be so in the in the last six months, only to be proven incorrect the very next day (perhaps I should stop writing them and cut my losses!)
The outgoing New York Fed’s Dudley just can’t seem to let things be as they are on his way out the door as he repeats the Fed’s biggest public relations disaster, the debunked Phillips curve mantra – TOO MANY JOBS to be safe.
The federal funds rate will probably have to climb a little bit above neutral, because the unemployment rate is already — from most people’s vantage points — below a sustainable level of unemployment consistent with stable inflation,” Dudley told reporters Friday. “So, I think the move will be eventually to a slightly tight monetary policy.”
And then he contradicts himself:
“The problem is trying to generate a sustained high level of employment, and the way you keep employment at a high level on a sustained basis is you keep inflation in check,” Dudley said. “So, inflation in check is sort of a necessary condition to keep the economy in a position where it can actually keep employment at a high level.”
With recent monetary events in Japan in mind, this time, I will myself to not miss an opportunity to keep my mouth shut and send Mr. Dudley off into the vast unknown with my sincerest hope is that he is justly judged by history.
In other dinosaur news, a scathing IG report on FBI conduct in the investigation of Hillary Clinton’s email server was released yesterday. It is a 500-some-page report with way too many interesting points to include here. So I want to point to a few highlights in it about former FBI Directory Comey, such as insubordination and violation of protocol in releasing memos about investigations pertaining to Hillary, because there are some important contextual nuances to these that aren’t discussed in detail.
These nuances present Comey as a hopeless adherent to a dinosaur social construct in the fact that he usurped AG Lynch’s authority, who was not only the first female AG but also the first minority female AG, in “move over babe, let me show you how it’s done,” style. At the very least, this is a story about Comey’s unethical self-promotion at the expense of others.
It would be enough of an outrage if this is all that Comey is alleged by the IG to have done, but it doesn’t take 500 pages to report this. And the saddest irony of all of this is, after his treatment of Lynch, the congressional members of the party that supposedly stands staunchly for social equality, inclusiveness and tolerance, especially the women, fell all over themselves to get into line behind Comey after his firing for the sake of political expediency in a huge slap in the face to Lynch and just about every other woman voter who bought their brand of snake oil.
I’ll probably have more to say about this later. But for now, I’ve said enough.