It goes pretty far down the usual list when making the case for the Fed to raise the funds rate at the next meeting:
- Opens by overstating the rate of inflation.
- Confuses “normal” and “neutral” and with what they remember rates having been on average a long time ago.
- Uses the word “swollen” to describe the Fed’s balance sheet.
- Concludes by fretting about a surge of inflation.
I think it could have been improved if it had thrown in that the Fed is encouraging an equity bubble and acting politically to help the GOP retain the House and Senate in 2018. I would have worked “bloated” in there. But from the perspective of mischaracterizing what the Fed is up to, I would have to say this editorial covers about 2/3 of the usual bases. Not too shabby!
I have no idea if the Fed goes in March. At some point soon, the Fed will want to contain growth to trend, because we are at full employment, or thereabouts, I think. But that is separate. In terms of regurgitating mindless bromides, Bloomberg remains on its game here.