Jester,

Yes, but when has the Fed ever shown contriteness, much less shame, much less an admission of bad judgment or forecasts? Maybe Greenspan post facto in terms of his saying something to the effect of "I underestimated......" (I actually like him a lot, not a popular stance - whatever sins he committed, his obvious intellect was a welcomed characteristic, even if most of the congressional committees didn't understand what he was saying.)

As I've noted before, it's a funny illusion that if the Fed says something (such was weakness in China is a concern, or any referential statement), suddenly the market acts as if the Fed saying it makes it real, whereas before it was not factual. I know the effect is created by the market reacting to how such pronouncements will influence the Fed's decision on rates, but it's sure looks like the tail is wagging the dog.

But as you say, there is no accountability. Again: Can you name which economists got the Q/Y predictions way overoptimistic? I can't.