The Uncertainty Certainty

Conn Carroll /

The left just can not come to grips with the fact that their hyper-aggressive policy agenda is a major factor causing unemployment. Witness Mother Jones trying to debunk “The Uncertainty Meme” after reading USC business professor Ayse Imrohoroglu identify uncertainty as a confidence killer.

On inflation Drum writes:

Interest rates will remain very low for a very long time. The Fed has made this as clear as any central bank possibly could.

The Fed certainly intends to keep interest rates, especially long-term interest rates low, but the Fed’s experiment in quantitative easing does not seem to be unfolding the way it expected. Since putting the policy into practice, long-term interest rates have jumped considerably, up from about 2.6 percent to nearly 3 percent in just five days. For interest rate movements, that’s just about the equivalent of light speed. Whether the Fed is right or wrong, the fact remains the future of inflation and interest rates, and the Fed’s impact, are extremely uncertain, making it especially difficult for businesses to make decisions. (more…)