A New Definition Of Full Employment Would Be “No Surprise”
“The difficulty lies not so much in developing new ideas as in escaping from old ones.” (JMK)
Summary:
· The “Fat Tail”, of Fed communication, on “Jefferson’s Airplane”, gets fatter and dumber through “word and deed”.
· The fattening “Fat Tail”, of Fed communication, infers a heavier economic landing for Jefferson’s Airplane.
· The “Fat Tail”, of Fed communication, on “Jefferson’s Airplane”, has been, prematurely, awarded the Great American prize for procrastination, rather than results.
· Fed procrastination attempts to disguise the tactic of conflating an implicit higher inflation target, with an implicit lower unemployment target, because the latter is less damaging, for central banker credible commitment, under the current tightly-resourced economic circumstances.
· Fed procrastination nudges and frames a new definition of full employment.
· A new definition of full employment would soften the economic landing, of Jefferson’s Airplane, and normalize the yield curve.
· Fed procrastination is an abuse of Congressional dual mandate guidelines for, self-interested expediency and, politically motivated economic agency aka Friend-Shoring.
Extracts
· (Philip) Jefferson Airplane’s soft-landing gear is down, so Fed rate hikes have ended in his log book.
· Jefferson’s Airplane has a fat tail.
(Source: the Author)
· Dimon’s Hurrikraine correlates with the emerging strong US Dollar growth headwind narrative nudging for a global managed trade/FX regime solution.
· Now would be a good time for the Fed to start some thought leadership on a new definition of full employment.
· The Federal Reserve and Federal Government are separately fighting inflation, whilst simultaneously fighting each other.
(Source: the Author)