Why The Fed Is Paralyzed-----Its Economic Model Is Junk

``... the unemployment rate is so far out of whack that the FOMC, a committee dedicated to believing in it above all else, really cannot base monetary policy on the most basic Keynesian, Phillips Curve assumptions. In fact, by count of even orthodox theory, the unemployment rate cannot be real. It doesn't take much survey outside of these three variables to confirm the suspicion. As much as policymakers want it to be meaningful and representative, the fact that their own models not only fail to confirm it but openly refute it (with emphasis) is why Janet Yellen is slow on the rate hikes even though she talks about the jobs market at every opportunity (as if the unemployment rate as merely a number were, rational expectations, itself a stimulant that QE never was or could be).''