Jeff Cox — Fed 'behind the curve'—right where it wants to be

Paul MeCulley disagree with the vigilantes.

In a report issued for clients earlier in the week, McCulley said "behind the curve" is exactly where the Fed wants to be—for now. The goal is to keep interest rates low not until unemployment falls below 6 percent or inflation eclipses 2 percent—the previously stated goals from the Open Market Committee for when it would begin to consider raising rates—but until consumer buying power gets considerably stronger.

"Monetary Keynesianism"? The above link to McCulley's letter is revealing about the capital to labor share ratio. It's also revealing how McCulley thinks. Worth a read.

CNBC NetNet
Fed 'behind the curve'—right where it wants to be
Jeff Cox