Will the Federal Reserve ever understand the economy?

Last week, Federal Reserve Chair Janet Yellen and her crew of fumbling Fed heads d𒉰ropped the ball again.

Behind news that a much weaker than expected total of 38,000 jobs﷽ were created in May — and with Britain’s overhyped Brexit vote on whether to pull out of the European Union coming up this week — not many were looking for the Fed to raise rates for the second time in nine ye✤ars.

And it’s not only the Fed’s decision to keep rates stiflingly low, buꦬt it’s the way that it delivers its message, seಌnding an unhelpful negative signal to our economy, that has sent markets reeling.

The Fed has been consistently 🔯wrong on its economy 𒁃and interest rate forecasts for numerous years now.

These infuriating Fed fumbles show that the central bank really has little to no clue what it is doiಞng.

I💜n the Fed’s May minutes — its communiqué to businesses and markets — all iꦡndications were that our second rate hike in more than nine years was coming shortly.

In its own words: “Most participants judged that if incoming data were consistent with economic growth picking up in the second quarter, labor market conditions continuing to strengthen, and inflation making progress toward the committee’s 2 percent objective, then it likely would be appropriate for the committee to increase the target range for the federal funds rate in June.”
This, mind 𒅌you, was mere wℱeeks before its June meeting.

Contrast that with this: “I can’t specify a timetable” for when rates will next be raised. That’s what Yellen said last week after the Fed’s June meeting. “Weꦯ are quite uncertain about where rates are heading in the longer term,” she said.

Sounds like somebody is a wee bit confused.

Today’s Fed has created an environment of overanalysis 😼paralysis and, as a result the economy has taken on a deer-in-the-headlight🐭s inaction.