After months of intensifying attacks on its policies, and steadily tanking equity markets, the best the Fed found to say last week was "don't blame us, blame China and the weakening energy prices."
Needlessly on the defensive, the Fed apparently could not find anything to reassure the markets with facts about the true state of the U.S. economy. So, here are some ideas.
How about telling the world that, with a growth rate of 2.4 percent for the second consecutive year, the U.S. economy is currently operating almost an entire percentage point above its long-term potential, delineated by the available labor and (physical) capital resources?
And how about a reminder that, thanks to this nicely growing economy, Uncle Sam cut a check to the rest of the world last year for $758.9 billion, after a $741.5 billion contribution he sent out in 2014? You can think of these checks as being literally written by the Fed's support to the economy, and endorsed by the international trade policy conducted by the White House and the Congress, which is now becoming a big bone of contention in presidential primaries.
How does that strike you, compared with $1 trillion sucked out of the global economy by countries ballyhooed as the "future of the world," and those developed economies seeking growth by living off their trade partners? Out of that number, what is called the "dynamic Asia" got a cool $585 billion hongbao for its Spring Festival. But the Uncle did not even get a "thank you" note.
Say it ain't so, Fed
The Fed's bad-news arguments are exactly those used by "head-for-the-hills" doomsayers masquerading as sophisticated investment analysts.