But if such a rate exists, it would have been both communicated and achieved by now. All of their other data, whether unemployment statistics or hourly earnings, is just noise in an already crowded arena of barely useful economic data, serving little purpose other than maintaining the illusion of control.
https://mises.org/power-market/goldilocks-zone
The latest meeting minutes of the Federal Open Market Committee (FOMC) offers valuable insights into the make-believe nature of monetary policy. While the true motives of the Fed’s inner circle may forever remain a mystery, it is evident their narrative revolves around the quest for an ideal economic state or finding a “Goldilocks Zone” of economic data. Only when the data aligns perfectly will the Fed’s mission be complete and the battle against inflation be won.
Let’s examine their perspective on the unemployment rate. In their own words:
The unemployment rate edged up, on net, but was still at a low level of 3.7 percent in May. On balance, the unemployment rate for African Americans moved up to 5.6 percent, while the jobless rate for Hispanics moved down to 4.0 percent.
Perhaps some find unemployment statistics intriguing. But the practical application of this data can hardly be explained and its conclusions are offensive. If African Americans are at 5.6 percent and Hispanics at 4.0 percent, it suggests that somewhere in America exists a team of technocrats tasked with answering the question: How many minorities should be in the workforce?
Average hourly earnings are given similar treatment:
Over the 12 months ending in May, average hourly earnings for all employees increased 4.3 percent, below its peak of 5.9 percent early last year.
Even if we overlook the issues of arriving at a national average for hourly earnings, the problem persists in what the preferred hourly pay should be.
Mainstream economic news outlets like CBS perpetuate the Goldilocks idea:
Some economists expect the Fed to raise rates at every other meeting as it seeks to pull off a difficult maneuver: Raising borrowing costs high enough to cool the economy and tame inflation yet not so high as to cause a deep recession.
Should anyone believe these economists, they’d have to believe the Fed can do the impossible; in this version, finding the interest rate that ensures the economy runs neither too hot, nor too cold so that prices continually rise by just the right amount, guaranteeing prosperity…
Be seeing you
MCViewPoint 