{"id":21953,"date":"2016-10-08T15:34:41","date_gmt":"2016-10-08T20:34:41","guid":{"rendered":"http:\/\/olduvai.ca\/?p=21953"},"modified":"2016-10-08T15:34:41","modified_gmt":"2016-10-08T20:34:41","slug":"fed-vice-chair-fischer-admits-fed-is-waiting-for-godot","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=21953","title":{"rendered":"Fed Vice Chair Fischer Admits Fed is Waiting for Godot"},"content":{"rendered":"<header>\n<h3 class=\"entry-title\"><a href=\"http:\/\/wolfstreet.com\/2016\/10\/07\/fed-fischer-fed-waiting-for-godot-fourth-mandate\/\">Fed Vice Chair Fischer Admits Fed is Waiting for Godot<\/a><\/h3>\n<\/header>\n<div class=\"entry-content\">\n<p><strong>The Fed\u2019s fourth mandate.<\/strong><\/p>\n<p>In his keynote speech on the usual suspects of central-bank topics at the Institute of International Finance\u2019s big shindig in Washington DC today, Fed Vice Chair Stanley Fischer nevertheless managed to develop a new theory for a fourth Fed mandate.<\/p>\n<p>This new mandate would come on top of the third mandate: inflating asset bubbles at all costs (unlimited asset price inflation). The other two mandates are \u201cfull employment\u201d (whatever that means) and \u201cprice stability,\u201d which is ironically defined as consumer price inflation, the way the Fed counts it, of at the moment 2%, and a lot more in most people\u2019s real-life experience.<\/p>\n<p>Fischer has been grumbling about the slow growth of the US economy for a while \u2013 \u201cEverybody is trying to find out what is going on,\u201d he said today, and then went on to explain what\u2019s going on.\u00a0Turns out, what\u2019s restraining economic growth and investment is a lack of \u201cconfidence\u201d and \u201canimal spirits.\u201d<\/p>\n<p>\u201cConfidence has to be turned on for people to want to invest and we\u2019re waiting to see that happen,\u201d he said, according to\u00a0<a href=\"http:\/\/www.marketwatch.com\/story\/fed-is-waiting-for-confidence-to-turn-on-fischer-says-2016-10-07\">MarketWatch<\/a>. \u201cIt will happen at some point. But precisely when\u201d is unknown he said.<\/p>\n<p>\u201cAnimal spirits aren\u2019t there \u2013 people aren\u2019t excited about growth prospects.\u201d<\/p>\n<p>So no interest rate increases until these \u201canimal spirits\u201d and \u201cconfidence\u201d show up?<\/p>\n<p>But, but, but\u2026 the Fed\u2019s monetary policies for the past eight years have created the biggest credit bubble in US history, including the biggest junk bond bubble ever, a stock market bubble, housing bubbles in numerous cities around the country that exceed by far the peaks of the prior housing bubbles that imploded\u00a0so spectacularly, the most gigantic commercial real estate bubble, now according to the Green Street Commercial Property Price Index, 26.5% above its totally crazy bubble peak of August 2007\u2026.<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Fed Vice Chair Fischer Admits Fed is Waiting for Godot The Fed\u2019s fourth mandate. In his keynote speech on the usual suspects of central-bank topics at the Institute of International Finance\u2019s big shindig in Washington DC today, Fed Vice Chair Stanley Fischer nevertheless managed to develop a new theory for a fourth Fed mandate. This [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[3203,303,11497,534,3650,4254,4255],"class_list":["post-21953","post","type-post","status-publish","format-standard","hentry","category-economics","tag-credit-bubble","tag-fed","tag-market-watch","tag-monetary-policy","tag-us-federal-reserve","tag-wolf-richter","tag-wolfstreet"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/21953","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=21953"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/21953\/revisions"}],"predecessor-version":[{"id":21954,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/21953\/revisions\/21954"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=21953"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=21953"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=21953"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}