There's a WSJ article on the Fed's new projections for the economy. It's not very good. Embedded in that article is the real story - the fact that the economic modelers at the Fed, who should be some of the very best in the country, are essentially ignorant of how the economy works. Here's the chart that says it all.
|Outside of 2013, the Fed's models have consistently missed way high. Morons.|
It's all rubbish. They should have known it was rubbish from the start.
In the last 4 years, government meddling has wrecked the pricing of debt, taken control of the entire healthcare industry and larded up the Federal Register with mounds of new regulations. That they think those actions would lead to growth in the 3-5% range is a tribute to their theology, but not rational, evidence-based thought.
The data is right in front of them, but I doubt the larger lessons are being learned. It's hard to give up your religion, even if what you worship is the State.