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A Framework That Provides Clarity

During periods of “low visibility,” confusion reigns: for every indication of one trend, there seems to be a countertrend. The key is to glean from the collective wisdom of reliable leading indicators a clear signal that the economy is headed for a turn.

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What The Fed Can Learn From Carl Sagan


“Extraordinary claims require extraordinary evidence,” said Carl Sagan, astronomer extraordinaire.

That philosophy should apply to anything. If you say you can read minds or levitate, then at least back it up with substantial evidence that you can do so. The same should be true for the policies of the Federal Reserve, which has implemented some extraordinary monetary policy over the last few years. The question is, where is the evidence that it works?

Unfortunately, the Fed’s policy making experts haven’t got the goods to back up their claims, says Economic Cycle Research Institute’s cofounder Lakshman Acuthan. He explained to me what he meant in the latest installment of “Outside On Wall Street:” Watch, listen, and learn in this video.

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Bloomberg TV

ECRI May 9, 2016

On May 9 at 6:00 AM (ET) ECRI's Lakshman Achuthan will guest host with Tom Keene on Bloomberg TV.