Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

FEDERAL RESERVE Powell Set To Deliver ‘Profoundly Consequential’ Speech, Changing How The Fed Views Inflation
CNBC ^ | 08/24/20 | Jeff Cox

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 ...


TOPICS: Business/Economy; Constitution/Conservatism; News/Current Events; Politics/Elections; US: Wyoming
KEYWORDS: averageinflation; chairmanpowell; cnbc; dsj03; federalreserve; incometaxes; inflation; jacksonhole; jeffcox; jeromepowell; msnbc; nbc; nobrainscollectively; paulvolcker; speech; tallpaul; taxcutsandjobsact; taxreform; tcja; wyoming
Navigation: use the links below to view more comments.
first previous 1-2021-4041-6061-76 last
To: Enlightened1

Food prices in Seattle have nearly doubled.

The Fed needs to go period.


61 posted on 08/24/2020 8:45:57 PM PDT by Hostage (Article V)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Enlightened1

already a done deal and not the fed’s choice. the events of this year made this a forgone conclusion. the fed wishes to not look irrelevant or powerless. inflation is coming regardless.


62 posted on 08/24/2020 10:07:01 PM PDT by WoofDog123
[ Post Reply | Private Reply | To 1 | View Replies]

To: eyeamok

With no police we can play FED and print money at home.


63 posted on 08/24/2020 10:40:02 PM PDT by datricker (the war of 2024 will be fought at 2.4Ghz stock up on aluminium foil now!)
[ Post Reply | Private Reply | To 27 | View Replies]

To: Enlightened1

We are linked, like it or not, with the other fiat’s of the world. When we devalue they will as well. Hell, they already are. The 30 yr bonds went negative... no one buys them anymore. Kind of seems like we are the Romans trimming gold and silver off of their coins resulting in cutting off some of Caesar’s nose trying to save his face. jmho.


64 posted on 08/25/2020 1:08:52 AM PDT by centermass_socrates (Keep it clean, keep it loaded, and keep it handy..)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Drago

Yeah, the Fed’s timing isn’t that precise...the “bubble bursting” crashes are hard to time...the late 2007 crash was coincidentally an election year (most of the crash after the Nov. election) , but I am pretty sure that was a coincidence.
****************************************************************************
That crash was in the latter part of 2008. I had sold half of everything in late 2007. So when the crash came I had money to invest. Got some good stocks real cheap.


65 posted on 08/25/2020 1:29:53 AM PDT by greeneyes ( Moderation In Pursuit of Justice is NO Virtue--LET FREEDOM RING)
[ Post Reply | Private Reply | To 44 | View Replies]

To: Enlightened1

Let’s see what happens when Walmart and Amazon go down. Let’s see what happens when refusal to pay property taxes occur. Let’s see what happens to the brainwashing inclusion tuitions skyrocket


66 posted on 08/25/2020 1:42:45 AM PDT by Varsity Flight (QE 2020. All Quiet on the Western Front)
[ Post Reply | Private Reply | To 1 | View Replies]

To: greeneyes

Yeah you are right I remember the Bush/Obama transition had a “Stimulus” bill attached ($1 trillion’ish)...just thought the election/transition was “07-’08, but it was ‘08-’09.


67 posted on 08/25/2020 1:43:34 AM PDT by Drago
[ Post Reply | Private Reply | To 65 | View Replies]

To: Drago

Understandable—the years begin to run together. I remember it because my Dad was in the hospital when the crash happened, and I had to borrow a computer to buy the stocks — and the Dr. I borrowed it from could only give me about 15 minutes to use it. I didn’t have a lap top then.


68 posted on 08/25/2020 1:45:46 AM PDT by greeneyes ( Moderation In Pursuit of Justice is NO Virtue--LET FREEDOM RING)
[ Post Reply | Private Reply | To 67 | View Replies]

To: greeneyes

Yeah, sounds a bit like me....was at an Italian restaurant for lunch with friends and was itching to get home to monitor the market (and Lehman Brothers/banks going down).


69 posted on 08/25/2020 1:59:01 AM PDT by Drago
[ Post Reply | Private Reply | To 68 | View Replies]

To: Drago

Yep. Hated that I couldn’t do more, but Getting Ford for 3 bucks a share was pretty neat. Got some good bank stocks too.


70 posted on 08/25/2020 2:02:29 AM PDT by greeneyes ( Moderation In Pursuit of Justice is NO Virtue--LET FREEDOM RING)
[ Post Reply | Private Reply | To 69 | View Replies]

To: DoodleDawg

Unemployment will not be helped with inflation in today’s economy which has been crushed by travel and entertainment problems. When we get over the pandemic jobs will come roaring back.


71 posted on 08/25/2020 2:51:00 AM PDT by LibertyOh
[ Post Reply | Private Reply | To 9 | View Replies]

To: LibertyOh
Unemployment will not be helped with inflation in today’s economy which has been crushed by travel and entertainment problems.

It will not be helped if the Fed raises interest rates to combat inflation either.

72 posted on 08/25/2020 3:36:27 AM PDT by DoodleDawg
[ Post Reply | Private Reply | To 71 | View Replies]

To: DoodleDawg

No the Fed is trying to enrich itself as usual. The Federal Reserve doesn’t give a rats bazoo about the American people or our country. The single goal of the Federal Reserve Bank a private organization is to transfer wealth from the people to the central banking system. What do you think inflation means to the Fed? It means profit.

Their time is limited. Trump is coming for the Fed in his second term. They have to have figured it out. Trump currently has them trapped at issuing dollars at zero interest. No profit in that. He’s going to stick them with this stimulus money as much of it is not collateralized by Treasury notes.


73 posted on 08/25/2020 8:28:29 AM PDT by Georgia Girl 2 (The only purpose of a pistol is to fight your way back to the rifle you should never have dropped)
[ Post Reply | Private Reply | To 9 | View Replies]

To: Georgia Girl 2
Their time is limited. Trump is coming for the Fed in his second term.

Of course he is.

74 posted on 08/25/2020 8:39:03 AM PDT by DoodleDawg
[ Post Reply | Private Reply | To 73 | View Replies]

To: Enlightened1

Inflation is already going up.


75 posted on 08/25/2020 8:41:52 AM PDT by BiteYourSelf
[ Post Reply | Private Reply | To 1 | View Replies]

To: Theoria
The Fed is pumping inflation, while deflation is the answer of the future.

You are the first poster on here to understand that -- and I've been hanging around these parts for 20 years.

Americans have been miseducated into believing that some inflation is necessary for growth. What a crock.

76 posted on 08/25/2020 11:46:26 AM PDT by BfloGuy ( Even the opponents of Socialism are dominated by socialist ideas.)
[ Post Reply | Private Reply | To 7 | View Replies]


Navigation: use the links below to view more comments.
first previous 1-2021-4041-6061-76 last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson