The employment act of 1946…

One of the four monetary policy goals of the Fed chair is high employment. Which is stated in the act as “responsibly of the Federal government…to foster and promote…conditions under which there will be afforded useful employment, for those able, willing and seeking to work, and to promote maximum employment, production, and purchasing power. “ Which translates into more aggressive expansionary monetary policy. On the other hand, are we more realistically in the grips of stagflation, in regards to the still lower GDP and bump in inflation? Outside of the creation of any artificial market for which the demand for labor would be needed, government intervention is inevitable if we are to move forward. But we can’t ignore the fact that the government is not a cash machine. Big B must take responsibility and act in a more utilitarian fashion, or run the risk of losing their customer base forever or for the next twenty years. Cutting interest rates and adding money through the money market system isn’t enough. More aggressive are needed to shock the hearts and minds of consumers. The predictions of the PCE and other indicators offer no crystal ball vision into the next six months. The number of dynamics at play here are staggering, we are not the only players in our own back yard. One move in the right direction is a hard look at current policy reform. Banking, credit cards, houses, car loans and taxes. Next on the table would be government spending and net exports, it’s time we leveled the playing field on imports and exports into and out of the U.S. Along with real authority over those who choose to ignore the rules. We hang on ever word from the chair, waiting for some good news…will it come soon?