Posted on 08/24/2020 5:38:19 PM PDT by Enlightened1
Fed Chairman Jerome Powell will speak Thursday during a virtual version of the Fed’s annual Jackson Hole, Wyoming, conference.
He is expected to outline what could be the central bank’s most active efforts ever to spur inflation back to a healthy level.
“Average inflation” targeting means the Fed will allow inflation to run higher than normal for a period of time.
The effort will be the reverse of former Fed Chairman Paul Volcker’s rate hikes instituted to quash inflation in the 1980s.
History will remember Paul Volcker and Jerome Powell as standing on the opposite ends of the inflation canyon, with the former taking desperate actions to try to tamp it down and the latter expected this week to announce an unprecedented effort to crank it back up.
Powell, the central bank chief since 2018, is likely to detail a set of measures aimed at pushing inflation higher amid a coronavirus pandemic that has dragged the U.S. economy into one of its darkest hours.
While the average consumer might find it absurd to want to raise the cost of living, central bankers and economists see too little inflation also as a problem. It often reflects a slow-moving economy with a low standard of living. On top of that, the accompanying low interest rates give policymakers little wiggle room when crises happen and there’s a need to loosen policy.
That’s why Powell, who will speak Thursday during a virtual version of the Fed’s annual Jackson Hole, Wyoming, conference, will outline what could be the central bank’s most active efforts ever to spur inflation back to a healthy level. The speech is titled “Monetary Policy Framework Review” and wraps up a yearlong examination both among central bank officials and with the public, during a series of open events, on what policy..
(Excerpt) Read more at cnbc.com ...
This goes against what every Fed Chairman that did in the past to curve inflation.
This means prices will go up, and Americans standard of living will go down.
What do they care? They’ll never go hungry, like plenty of “little” people will.
Especially those on fixed incomes.
It’s a political move to hurt President Trump right before the election.
We have the shutdown of our economy, and now Powell wants to allow prices on everything to rise?
Trying hard to kill what’s left of the economy before November.
It is going to hurt people on fixed incomes BIG TIME.
Exactly!
It is about our purchasing power. With deflation we can buy more with our dollar.
What's more damaging to Trump, inflation at 3% rather than 2% or an unemployment rate of 10.3%? The Fed is trying to help tackle unemployment and it may be at the cost of slightly higher inflation rates.
They will be bringing a giant sucking machine into your savings account.
Time to invest in gold or real estate.
Note where the conference is being held, Jackson Hole WY. Says a lot about how the do not cRe about the average taxpayer.
Two words: Gold Standard.
Contrary to the very mission of the Fed, which is to ensure the stability of the currency. A (historically low) inflation rate of 3% will halve the value of the currency in 24 years, and make $1.00 worth about $0.06 in a century - which is about what the Fed has done, if not worse.
The Fed has failed its primary (public) mission (and what it’s REAL mission was/is has probably never been released to the public - but it is not federal, doesn’t have reserves, and isn’t a bank, though it is owned by banks). What Powell is doing is only ensuring that this failure will continue, if not accelerate.
If you are working and get salary and wage increases to match, you’ll come out ok. Retirees on fixed incomes are the ones that really get screwed, especially if they are renters.
“So that will replace the laugh track that currently plays when I open my statement?”
Weeping first. Then rage, I’d imagine.
L
The number that cannot go up is the interest rate. If that goes up to 1970s levels the country will go broke REALLY fast.
Well prices in general have doubled/tripled on most things in the past 20 years while quality has gone down.
If that was deflation, I can’t wait for inflation.
Since it will cost more to do business, then expect more employed people to lose their jobs.
This is not a good thing. It is really bad.
We have inflation under President Carter and it was devastating in the last 1970s.
“What’s more damaging to Trump, inflation at 3% rather than 2% or an unemployment rate of 10.3%? The Fed is trying to help tackle unemployment and it may be at the cost of slightly higher inflation rates.”
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