10 views on the market from Jeremy Grantham
Finding danger in the Fed’s growth projections
Not surprisingly, Mr. Grantham takes issue with the Fed’s 3% growth assumption for future U.S. GDP. This target, “in the hands of probably the most influential man in the global economic world, it is an extremely dangerous one,” Mr. Grantham writes. He adds, "It would be safer and more confidence-inspiring, now that Bernanke appears to take his responsibility for growth seriously, that he at least have a reasonable growth target [preposterous as that notion is to me that the Fed should or even could affect long-term growth simply by messing about with interest rates].”
Source: GMO's 4Q letter
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