Startled Reporter Asks Why Yellen Hiked With GDP And Real Wages Sliding: Here Is The Response | Zero Hedge
"I'm going to try to take the opposite side of this, because -- and this question about market expectations, and how the market's got things wrong, and then how you say the Fed suddenly clarified what it already said. But for example, if the -- if you look at the Atlanta Fed's latest GDP tracker for the first quarter, it's down to 0.9 percent. We had a retail sales report that was mixed. We had the, you know, the upper divisions of previous months make it look better. But the consumer does not appear to be roaring in the first quarter, kind of underscoring the wait-and-see attitude you just mentioned.
If you look at measured of labor compensation, you note in the statement that they're not moving up. And in fact, they are -- and if you look at average out, there are so many things you can look at. And you yourself have said in the past that the fact that that is happening is perhaps an indication there's still slack in the labor market.
I guess my question is this: In another sense, what happened between December and March?
GDP is tracking very low. Measures of labor compensation are not threatening to boost inflation any time fast. The consumer is not picking up very much. Fiscal policy, we don't know what's going to happen with Donald Trump. And yet, you have to raise rates now. So what is the -- what is the motivation here? The economy is so far from your forecast in terms of GDP, why does the Fed have to move now? What does this signal, then, about the rest of the year?"
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