OilFinder2 wrote:My point is obvious and I'm not sure why we're not connecting: the Fed has the incentives, resources, and ability to analyze economic data to a degree equal to or greater than any other person or entity.
That's where I disagree. At the very least, other government entities (the Treasury Dept, the Commerce Dept, etc) have the same ability. In addition, universities and large companies like Goldman Sachs have the same resources and abilities. And they all use the same data, which is available to everyone, a sample of which I posted above.
It's not merely ACCESS TO data that's relevant; the Fed's analysis, interpretation, and use of the data is key. By way of illustration, here's a partial list of Fed publications.
A
Annual Percentage Rate Tables, vols. I and II
Annual Report
Annual Report: Budget Review
B
Bank Holding Company Supervision Manual
Bank Holding Company Performance Reports
Bank Secrecy Act Anti-Money Laundering Examination Manual
Beige Book
Bulletin (Federal Reserve)
Buscando la hipoteca más favorable: compare, verifique, negocie
C
Capital Adequacy Guidelines (Board regulations)
Commercial Bank Examination Manual
Consumer and Community Affairs Handbook (Regulatory Service)
Consumer Compliance Handbook
Consumer Guide to Check 21 and Substitute Checks
Consumer Handbook on Adjustable-Rate Mortgages
Consumer's Guide: Credit Cards
Consumer's Guide to Mortgage Lock-Ins
Consumer's Guide to Mortgage Refinancings
Consumer's Guide to Mortgage Settlement Costs
E
Examination Manual for U.S. Branches and Agencies of Foreign Banking Organizations
F
5 Tips: Avoiding Foreclosure Scams
5 Tips: Dealing with a Home Equity Line Freeze or Reduction
5 Tips: Getting the Most from Your Credit Card
5 Tips: Improving Your Credit Score
5 Tips: Protecting Your Checking Account
5 Tips: Protecting Your Home from Foreclosure
5 Tips: Shopping for a Mortgage
Federal Open Market Committee Rules | Order Form
Federal Reserve Act
Federal Reserve Bulletin
Federal Reserve Regulatory Service
Federal Reserve System: Purposes & Functions
FFIEC Information Technology (IT) Examination Handbook
Finance and Economics Discussion Series
G
Government Performance and Results Act (GPRA) Reports
Guide to Business Credit for Women, Minorities, and Small Businesses
Guide to the Flow of Funds Accounts
H
Home Mortgages: Understanding the Process and Your Right to Fair Lending
How to File a Consumer Complaint about a Bank
I
Interest-Only Mortgage Payments and Payment-Option ARMs--Are They for You?
International Finance Discussion Papers
International Journal of Central Banking
K
Keys to Vehicle Leasing: A Consumer Guide
L
Looking for the Best Mortgage: Shop, Compare, Negotiate
Lo que usted necesita saber: Nuevas normas para el uso de tarjetas de crédito que entrarán en vigencia a partir del 22 de agosto
Lo que necesita saber: Nuevos reglas de sobregiro para las tarjetas de debito y las tarjetas de ATM
Lo que necesita saber: Nuevas reglas para las tarjetas de crédito eficaz Feb. 22
Lo que usted debería saber sobre las líneas de crédito con garantía hipotecaria
Lo que usted debería saber sobre sus cheques
M
Models & Monetary Policy: Research in the Tradition of Dale Henderson, Richard Porter, and Peter Tinsley
Monetary Policy and Reserve Requirements Handbook (Regulatory Service)
Monetary Policy Report to the Congress
Monthly Report on Credit and Liquidity Programs and the Balance Sheet
O
Other Reports to Congress
P
Payment System Handbook (Regulatory Service)
Privacy Choices for Your Personal Financial Information
Protecting Yourself from Overdraft and Bounced-Check Fees
Protéjase de los cargos por cheques rebotados y sobregiros
Purposes & Functions
Putting Your Home on the Loan Line Is Risky Business
R
Regulation Pamphlets
S
Securities Credit Transactions Handbook (Regulatory Service)
Staff Studies
Statistical Digest
Statistical Releases
Surveys and Reports
T
There's a Lot to Learn about Money (188 KB PDF)
Trading and Capital-Markets Activities Manual
User's Guide for the Bank Holding Company Performance Report
Utilizar su hogar como garantía para un préstamo es arriesgado
W
What You Need to Know: New Credit Card Rules Effective Feb. 22, 2010
What You Need to Know: New Credit Card Rules Effective Aug. 22, 2010
What You Need to Know: New Overdraft Rules for Debit and ATM Cards
What You Need to Know: New Rules for Gift Cards
What You Should Know about Home Equity Lines of Credit
What You Should Know about Your Checks
When Is Your Check Not a Check? Electronic Check Conversion
You can get 2 economists to look at the exact same set of economic data and come up with 2 different conclusions. Unless you're prepared to answer 'yes' to my question of infallibility above, then you have to conclude that the Fed might - just might - be incorrect in making its QE2 decision, and that they decided to undertake QE2 because their predisposition is toward pessimism and/or it was the politically correct thing to do.
The point is not whether QE2 was the right decision; the point is that, after much deliberation, the Fed became gravely concerned about the moribund and deteriorating economy so as to necessitate the invocation of an extreme and desperate remedy -- a remedy that is completely inconsistent with a healthy recovery. If the economy were amid a true recovery, ZIRP and QE2 would not be necessary.