Economists Amazed At Steady Recovery

Economists seem to be blown away and shocked about the slow recovery from the Great Recession, which bewildered them and proved most of their long-held beliefs and theories about inflation wrong, says the Federal Reserve Chair, Janet Yellen.

The reason why the Feds have not decided to have the U.S interest rate increased can be explained in the remarks she made at an economic conference. She never made mention of the government’s timeframe for rates. The central bank has high anticipations of having raising rates resumed by the end of this year.

The repercussion and consequences of this predicament has “revealed the limits of the economist, said Yellen. Take, for instance, the plummeting price of homes has made consumer spending less than economists had imagined. While wages and inflation didn’t go up or increase as expected, despite the stable decrease in the rate of unemployment. The Fed increased the rate from near zero some time ago, and it has been like that for about seven years now.