Simple math (and the gap in the Federal Reserve)

by pdxblake

Bernanke today echoing the comments from the last Federal Reserve meeting:

A: “given that growth is projected to be not much above the rate needed to absorb new entrants to the labor force, the reduction in the unemployment rate seems likely to be frustratingly slow. Indeed, the central tendency of participants’ forecasts now has the unemployment rate at 7 percent or higher at the end of 2014.”

B: “The central tendency of the Committee’s projections is that inflation will be 1.2 to 1.7 percent this year, and at or below the 2 percent level that the Committee judges to be consistent with its statutory mandate in 2013 and 2014.”

Normally, A + B = (C) More help for the economy.  But we’re not in normal times, now that C = “Almost treasonous”.

UPDATE: There is now a photo that describes Bernanke’s feeling about why A + B is not allowed to equal C.