Janet Yellen Shames Congress For Austerity, Being Terrible

[DallasNE]

5. "Fiscal policy has been working at cross purposes to monetary policy,"

I'm sure I have posted those exact words a number of times. But that takes no special insight. It just takes a little reporting so it doesn't show up as a surprise when someone like Yellen says it. Sadly, monetary policy will work at cross purposes in FY2014 because no agreement will be forthcoming from the joint budget conference and the government will again shut down. And when it does it will be worse than the $24 billion for the last 16 day partial shutdown for two reasons. Some of the extraordinary measures taken last time were one time events not available this time around then "round two" of sequester kicks in to accelerate the budding disaster. If she is back for testimony tomorrow I hope she fires a shot across the bow regarding the consequences of another shutdown.