(Click on image to enlarge)

Fed Summary of Economic Projections

(Click on image to enlarge)

The Fed projects the unemployment rate will hit 4.4 percent this year.

The current unemployment rate is 4.1 percent.

Unemployment Rate

Asymmetric Policy Adjustments

One key take away from today’s report is the Fed’s asymmetric policy decisions. At the first sign of trouble, the Fed is cutting rates by a half-point.

When inflation was soaring the Fed kept QE going on schedule to the bitter end and started hiking in baby steps with inflation soaring.

This is how and why the Fed fuels asset bubbles of increasing amplitude over time.

Spotlight Jobs

August 22: A Breakdown, by Sector, of the Negative 818,000 BLS Job Revisions

September 6: Payroll Report: Manufacturing Sheds 24,000 Jobs, Government Adds 24,000, Big Negative Revisions

September 7: BLS Negative Job Revisions 15 of Last 21 Months

September 9: Fed Beige Book Conditions Are Worse Now Than the Start of the Great Recession

In July, I thought the Fed would cut rates 50 basis points today. I want to repeat that was an expectation of what the Fed would do, not what I thought was the proper economic policy.

More By This Author: