Probably their last chance before the next crisis. It was already almost guaranteed, but we will probably see negative interest rates in the U.S. within a year.
The beatings will continue until morale improves.
The beatings will continue until morale improves.
EDIT:
Here it is: http://fm.cnbc.com/applications/cnbc.com/resources/files/201...
And here is this past June's dot plot:
http://fm.cnbc.com/applications/cnbc.com/resources/files/201...
Strange times.
But it was confirmed as a possibility a few hours later when the FMOC comments came out:
http://www.zerohedge.com/news/2015-09-17/fomc-stunner-one-fo...
It won't work, of course, but what else are they supposed to do?
That may be an average, but its hardly consistent.
The period (peak to peak) between recessions for the last 10 cycles has been:
81 months 128 months 100 months 18 months 74 months 47 months 116 months 32 months 49 months 56 months
> Plus negative interest rates being the only tool available to the Fed during a new recession.
OTOH, arguably, the reason that the Feds been forced to be so extreme with monetary policy that that might be the case is that the government has pretty much neglected fiscal policy responses. Which is, generally, not a positive thing, but it does mean that, as exhausted as the monetary policy options might be, the fiscal policy arsenal is well-stocked and untouched.
That's a rather large assumption IMHO. Prior conditions do not necessarily hold true in the future. We went ten years from 1991 to 2001 without a recession. We are due for a recession the same way Yellowstone is due for an eruption.
>Plus negative interest rates being the only tool available to the Fed during a new recession.
This does worry me.