The Fed's Conundrum
Will Rogers was asked once (or twice) why he made fun of Congress. He said simply, because
they make it so easy . The same may be said of the Federal Reserve today, but they get more sympathy
as they can t get it just right. And much of it is not totally their fault. Take the March jobs report for
example. Though the headline unemployment number rose to 5.0% from 4.9% last month, the employee
participation rate also ticked up to 63% marking the highest level since March 2014, and up from 62.2%
a year ago.
The Two Faces of Fear
Central banks and governments around the world just will not give up on monetary
policies in an attempt to stimulate economic growth. Some countries are still using quantitative
easing and low interest rates which have not really shown much success even here in the U.S.
Our economy is growing faster than most of the rest of the world, averaging about 2% since the
recession ended in June 2009. That s not rapid growth compared to previous recoveries since
World War II.