Wednesday we get the Fed’s decision on an April rate hike (the answer is no, of course) and what it thinks about moving in June (perhaps a rate cut).
Fresh data that Republican presidential candidate Donald Trump is the presumptive nominee after sweeping five primaries on Tuesday will of course play into the decision.
A Trump campaign with its anti-Fed rhetoric could have the central bank moving quickly to change the prospects of growth in the US. That presupposes that the Fed can affect growth after eight years of anemic economic activity.
Yellen and Co. under eight years of Democratic control have done wonders for the upper class and college economic textbook writers, but little for the average American. Wages are down, savings interest is nil and the Middle Class has been moved to the endangered species list.
There is no saving this economy with the present course of action. Following the Japanese model will only get us another decade of near-zero growth.
I believe failure needs to be brought back into the system. We did not allow any institution to fail after Lehman and we have paid the price many times over for that decision.
A Trump nomination my not put that prospect on the table, but it may start talk of doing something on the fiscal side to spur growth, besides jacking up health-care costs and claiming that “tax” added to GDP.
I’m sure at 2PM on Wednesday we will get a statement that is of little consequence to the average American, but will set off a buying rally in stocks and a sale in bonds.
So goes the US monetary policy. Yellen stammering, Lew invisible and White House mute.
Is it any wonder why we have not seen a picture of an US Middle Class family on the side of a milk carton with the word MISSING on top.