Reuters has the article Fed keeps U.S. rates steady, to start portfolio drawdown in October.
There is interesting information here, but one statement astounded me.
Fed Chair Janet Yellen said in a press conference after the end of the meeting that the fall in inflation this year remained a mystery, adding that the central bank was ready to change the interest rate outlook if needed.
The fall in inflation rate was explained by John Maynard Keynes in the late 1930s. I call it, “What part of no freakin’ customers do you not understand?” Keynes explained that you can push all the money you can into the economy, but if there is no consumer demand to stimulate investment, that money will sit idle. This lack of understanding of the failure of monetary policy to solve the problem of stimulating a little inflation into our economy is really frightening coming from the FED. If they can’t understand why their efforts failed, they won’t have a clue of what to do when things turn around and inflation comes roaring back.