Former Fed Governor Kevin Warsh last week slammed the Fed, during a speech delivered at the Hoover Fed Conference, admitting the central bank had no real "normalization" strategy aside from jawboning, and accused his former co-workers of potentially terminal groupthink.
During last year's Jackson Hole meeting, in a rare moment of truth St. Louis Fed president James Bullard discussed "asset bubbles" with CNBC's Steve Liesman, and said that "the Fed model has nothing about asset price bubbles, most models don't have anything about that", and as a result no Fed model ever forecasts asset bubbles, which incidentally explains why the traditional side-effect of Fed policy over the past decade has been, drumroll, asset bubbles.
Former Fed Governor Kevin Warsh, one of the most outspoken and critical members of the Fed's extended family by far, lashed out at the prevailing groupthink that has permeated the Federal Reserve in a speech delivered moments ago at the Hoover Fed Conference titled "The Battle of Ideas", in which among other things he explained that the Fed has no real strategy on policy normalization, asked "what could possibly go wrong" and, unlike all his former colleagues, provided an honest answer.
Here are some select excerpts from his speech:
Moments from now Federal Reserve Chair Janet Yellen will deliver a speech at Brown University as part of the "125 Years of Women at Brown Conference." While the purpose of the conference is to "celebrate the role of women at Brown over the last 125 years"....
Women who have played a critical role in shaping Brown on and off campus will be celebrated early May. The 125 Years of Women at Brown Conference will bring around 700 alums back to campus May 5 and 6 for a series of lectures, panels and events.
After the abysmal March labor report, all we - and the Fed - can say is that April better be good, or else Yellen's claim of "transitory weakness" will simply be the latest nail in the coffin of Fed credibility. Here is the consensus for the key numbers the BLS will report at 8:30am ET on Friday morning.