The Associated Press's Top Business News page lists the headlines and opening passages of what the wire service believes are the ten most important business stories at the moment. Its 9:16 a.m. version had a story entitled "JACKSON HOLE DEMONSTRATORS RALLY AGAINST RATE HIKE" listed fifth. Earlier in the morning it was fourth.
Surely, I thought to myself, this must be about a group of at least several hundred to merit this level of attention. Not at all. The opening sentence at Matthew Brown's Friday afternoon story tells us it was "a group of about 10," but that one group member somehow got to speak with Federal Reserve Chair Janet Yellen (bolds are mine):
In a Friday afternoon dispatch issued in the wake of the government's jobs report earlier that day, Christopher Rugaber and Josh Boak at the Associated Press wrote that "most economists ... forecast a strong rebound in economic growth - to a 3.5 percent annual rate in the current April-June quarter. And growth should reach nearly 3 percent for the full year, up from 1.9 percent in 2013, they expect."
There are two problems with that prediction. The first lies in how strong the third and fourth quarters will have to be for the economy to get "nearly 3 percent" for the full year, given the tiny first-quarter annualized growth of 0.1 percent reported on Wednesday. The second and perhaps more crucial issue is that the full-year estimate significantly exceeds the "altered assessment" at the Fed concerning how fast it thinks the economy can grow without running the risk of igniting inflation.
Former Federal Reserve Chairman Alan Greenspan made some rather ominous economic observations Sunday.
Appearing on CNN’s Fareed Zakaria GPS, Greenspan said, “[T]he level of uncertainty about the very long-term future is far greater than at any time I particularly remember.” He blamed it on “government intervention [that] has been so horrendous that businesses cannot basically decide what to do about the future” (video follows with transcript and commentary):
President Obama nominated Janet Yellen, Fed vice chair, to head the Federal Reserve on Oct. 9. If confirmed, she will take on Ben Bernanke’s role as chairman and be the first woman in that role. Networks lauded her nomination that evening, after having paid little attention to her liberal policies in recent months.
Broadcast network evening and morning shows were giddy at the nomination of Yellen. Her economic experience, intelligence and “working class roots” were all praised the night of her nomination and the following morning.
The next Federal Reserve Chairman will be Janet Yellen. President Barack Obama plans to nominate her on Oct. 9. Ahead of the announcement, Yellen, the liberal Fed vice chairman, was considered the most likely candidate to replace Ben Bernanke ever since Larry Summers, her chief rival for the nomination, bowed out of the race on Sept. 16.
She was a frontrunner even before Summers’ withdrawal. But between July 12 and Oct. 8, the networks paid very little attention to Yellen and the Fed candidacy. In fact, they spent more time covering Miss America in one day, than in three months of coverage of the future Fed chairman.