Utter failure of policy.
The Fed was certain it knew what Japan had done wrong and wasn’t going to make THOSE mistakes.
Cut rates much more aggressively.
Said it would do whatever it takes.
Figured out how to do its job as liquidity provider after only 6 months of alphabet soup programs.
Did heaps of Quantitative Easing.
Did the twist.
And now, realizing its done about all it can do, says monetary policy can’t do it all.
And still fails to recognize publicly the actual problem is the budget deficit is way too small.
And doesn’t directly inform Congress that
there is no such thing as a solvency problem,
the Fed controls government interest rates, and not the market,
there is no long term deficit problem with regards to finance,
the only thing we owe China is a bank statement,
Quantitative Easing and rate cuts remove interest income from the economy, which allows the deficit to be that much larger,
as we continue to go the way of Japan.
Some improvement around the edges but the larger narrative is employment rising only at a rate fast enough to keep the unemployment rate stable (not higher or lower)