Sunday, July 13, 2014 2:14:27 PM
Fed Members Reach Peak Complacency
Tyler Durden's picture
Submitted by Tyler Durden on 07/13/2014 13:22 -0400
Federal Reserve
Unemployment
Volatility
Amid consternation at the market's low levels of volatility - and concerns voiced regularly by Fed officials of 'complacency' - it appears the FOMC has never been more confident in its omnipotence. As WSJ reports, despite being consistently too optimistic about economic growth and too pessimistic about the falling unemployment rate, Federal reserve policy makers have never been less uncertain about their forecasts...
With consensus 2014 GDP expectations collapsing to +1.7% (and the Fed still at 2.1 to 2.3%), it appears the Fed's peak complacency is perfectly anti-correlated to the actual uncertainty about the future.
Tyler Durden's picture
Submitted by Tyler Durden on 07/13/2014 13:22 -0400
Federal Reserve
Unemployment
Volatility
Amid consternation at the market's low levels of volatility - and concerns voiced regularly by Fed officials of 'complacency' - it appears the FOMC has never been more confident in its omnipotence. As WSJ reports, despite being consistently too optimistic about economic growth and too pessimistic about the falling unemployment rate, Federal reserve policy makers have never been less uncertain about their forecasts...
With consensus 2014 GDP expectations collapsing to +1.7% (and the Fed still at 2.1 to 2.3%), it appears the Fed's peak complacency is perfectly anti-correlated to the actual uncertainty about the future.
Ray
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