Frederick J. Sheehan is the author of Panderer to Power: The Untold Story of How Alan Greenspan Enriched Wall Street and Left a Legacy of Recession (McGraw-Hill, 2009), which was translated and republished in Chinese (2014). He is researching a book about Ben Bernanke.
As always, there was plenty of talk after Federal Reserve Chairman Janet Yellen held a press conference yesterday, June 18, 2014. Complaints are heard she said nothing of substance, which is true. To what the Fed might do, Yellen answered, “It depends.”
In fact, there is no question what Janet Yellen will do. The Yellen Fed will inflate until the markets tell the Fed what to do. The-then Vice Chair recited all one needs to know on March 4, 2013, in “Challenges Confronting Monetary Policy.”
“I view the Committee’s current rate guidance as embodying “lower for longer” commitment….”
Federal Reserve Chairman Janet Yellen will inflate to infinity since her mind is incapable of grappling with an alternative.