Monday, November 22, 2010

Fed Turns Negative on Economic Outlook.

The Fed has changed its forecast for the US economy. It expects unemployment to be higher and longer in duration than previous forecasts. It also forecasts the inflation rate to be below 2% for the next few years. This forecast provides the rationale for its plan to use monetary policy to prevent deflation. Sarah Palin disagrees with Fed's plan. She claims that it is inflationary and she uses a different method than the economists at the Fed to measure inflation. Its best called the ordinary person's method of analysis. She claims that she went to the super market at found some of the prices of groceries had increased. Who needs the Fed?

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