QUESTIONS?

Here's a story that should improve your confidence in the Fed and new Chair Janet Yellen.

Some no doubt will see it as a positive, an admission of what they don't know, not a bad human trait to have in most cases. Just not this one. Yellen is a new chairperson, not a new member of the inner circle. Nor is she new to the world of politics. She's a wonk. One could easily suggest so much for the value of experience.

If in truth she is correct and their econometric mumble-jumble is offbeat, what's that say for the policies they've been conducting for the past several years? It's just a question. It doesn't deserve an answer unless you're a serious investor.

If as she postulates their models fail to predict price moves, could they possibly be understating inflation? Just another question. Famed investor Michael Price once said, it's not so much the answers you get. It's the questions you ask.

http://www.bloomberg.com/news/2014-04-25/yellen-concerned-fed-model-fails-to-predict-price-moves.html