A Couple of Gems from the Chicago Fed

Are we really supposed to believe that the feds looks at these charts and think "ya, this is pretty accurate, we are going to be alright."

I'm not convinced....   The first two charts shown below are my favorite, whereby the Chicago fed presumes both a rise in interest rates to 2% and a decrease in unemployment to just above 5% by 2016.  I don't even think most modern Keynesian economists would find this to be plausible, unless they are simultaneously ramping up asset purchasing programs?  I suppose the assumption that QEnfinity will stop before they begin to raise interest rates is a bit presumptuous, recklessness is trending.

For my next favorite graphic, I give you the Federal reserve assets and liabilities.  You can see that Fed assets in every class have shrunk miserably except for one: purchase programs.  The fed is holding 3.7 trillion in government IOU's.  That's 3.7 trillion dollars the government has spent that it otherwise would not have. He who says the fed is not an enabler of government debt may want to rethink some things.