Friday, October 30, 2015

Fed Cites Economic Strength As Leading Economic Indicator Contracts

News
The Economic Activity Composite (EAC) suggests that the Fed can no longer use economic strength as an excuse to raise rates. Though this reality might be limited to Insight readers, it won't stop various Fed members from talking up their opinions at the expense of the majority too busy chasing their tails to recognize that something has changed.

Ironic that the Fed suggests that the U.S. labor market has tightened 'considerably' while labor force participation rate have loosen 'considerably'. The discussion of one trend without the other relegates any subsequent interpretations as biased and opinion-driven.

Headline: Fed's Lacker says U.S. labor market has tightened 'considerably'

WASHINGTON, Oct 30 (Reuters) - Richmond Federal Reserve President Jeffrey Lacker on Friday said he favored raising interest rates at the Fed's policy meeting earlier this week because steady growth in the economy has helped labor markets to tighten "considerably."


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