The arrogance stems from the belief that a select group of bureaucrats can manage a multi-trillion-dollar economy. From Quoth the Raven at zerohedge.com:
Submitted by QTR’s Fringe Finance
Think seriously for a moment about what we were told about inflation over the last two years. As everybody knows, both the government and the Federal Reserve swore up and down to us that inflation was going to be transitory and they were, of course, dead wrong.
This wholly incorrect prognostication will be filed next to Ben Bernanke’s “subprime is contained” statement as one of the all-time worst pieces of financial and monetary analysis provided by those who are supposed to have mastery of the subject at a consequential time, ever.
Putting aside whether or not the Fed is nefarious or simply incompetent, what is far more alarming is that we continue to ascribe credibility and relevance to the same people who not only seem to have a poor understanding of the basics of economics, but also a willingness to either put their stupidity on display, or lie to the public with a straight face.
Which is why I feel like I can confidently declare exactly which “prediction” we are getting from the Fed and the Treasury that will turn out to be dead wrong: the idea that we are not headed, at warp speed, head-first into a recession.
As recently as last month, Janet Yellen was out telling the world that she didn’t anticipate a recession:
“The U.S. economy is obviously performing exceptionally well, with continued solid job creation, inflation gradually moving down, robust consumer spending,” she said. “I’m not anticipating a downturn in the economy.”
That’s a lovely thought, Janet, but you’re likely going to be proven dead wrong in short order.