Posted on 10/10/2022 8:26:50 PM PDT by RomanSoldier19
Chicago Federal Reserve President Charles Evans said the central bank is holding fast in its commitment to bring down inflation even if it means people losing their jobs.
Speaking three weeks before the Fed is expected to approve its fourth consecutive 0.75 percentage point interest rate increase, the central bank official told CNBC he hopes to minimize economic damage.
"Ultimately, inflation is the most important thing to get under control. That's job-one," Evans said during a live "Squawk on the Street" interview. "Price stability sets the stage for stronger growth in the future."
Markets will get a fresh look at producer and consumer price indexes later this week. Both have been showing cost-of-living increases near their highest levels in more than 40 years.
On the employment front, the Bureau of Labor Statistics reported Friday that nonfarm payrolls increased 263,000 in September, while the unemployment rate fell to 3.5%, tied for the lowest level since late 1969. However, Fed officials including Chair Jerome Powell have warned that they expect "some pain" from the Fed's inflation-fighting efforts that could include higher levels of joblessness.
(Excerpt) Read more at nbcnewyork.com ...
Notice how no one at the Fed ever calls for the federal government to do their part to economy. Notice how the Biden administration is solely relying on the Fed to fix the economy. These people are either gutless or it is intentional to drive America, and in turn, the world into the crapper. The latter helps with a global reset.
I hope you suffer a job loss!!!!!
Brilliant!!!
“Chicago Federal Reserve President Charles Evans said the central bank is holding fast in its commitment to bring down inflation even if it means people losing their jobs.”
Gross domestic product is a measurement that seeks to capture a country’s economic output. Countries with larger GDPs will have a greater amount of goods and services generated within them, and will generally have a higher standard of living. Job loss is the effect of a failing economy by inflation. In a good economy everyone is working and the GDP grows so everyone succeeds. If job loss is the outcome, the success of the economy grows worse. So by lowering the GDP by cutting back on the goods and services production by job loss, it drive the economy further into failure. Charles Evans is an idiot!
wy69
See my tagline. It is no accident.
And yes, people ARE going to lose their jobs, though I doubt it will fix inflation.
The whole problem is this built in inflation.
Why do we have inflation at all when our technology increases productivity, everything should be cheaper.
Finite resources will increase in price as they become more rare, but that should be a market driven process not a goal pre-determined by bankers.
Why is my $184,000 house and property now worth over $1,200,000?
I didn’t make that many improvements.
Government just wanted more taxes.
Screw your recession, we need a DEPRESSION of prices.
My pensions and my fellow citizens wages certainly aren’t keeping up with this artificial inflation.
besides, if fuel gets to $10 per gallon who are they going to sell it to? Al Gore?
Democrats hate America!
And are determined to take the USA down to third-world status!
SAVE AMERICA! VOTE REPUBLICAN IN 2022, 2023 AND 2024!
All this pain and misery because of a cold virus.
For the last four or so months I’ve been predicting massive unemployment beginning in this quarter. There are multiple structural problems with the economy. Fed rate hikes will be a contributing factor. But, like you wrote, it probably won’t fix inflation. Rewind your economic data to 1972 and look at changes in monetary, fiscal, regulatory and tax policy until 1986 or so. We’re at the beginning of the current economic downturn and while not exactly the same, there are a lot of parallels with today and then. If there is uncoordinated and vacillating policy changes expect our problems to persist for over a decade. There are too many moving parts for the Fed to claim victory just on changes of monetary policy. Even if inflation goes below 2%, it doesn’t mean they caused it to happen.
My part time job ends on Tuesday
Still have my early SSI though
It’s upside down world now isn’t it?
It’s not going to fix inflation but will exacerbate it. We have a debt ridden world. Any upticks in debt servicing costs will be passed on to consumers... raising prices more. Unemployment will dramatically rise, inflation will sky rocket, economy will crash, stimulus will increase inflation more. Best just to let it sort itself out. Stable rates with some inflation and some job loss.
The Fed is politicized. During the Obama/Biden Administration they held interest rates artificially low. They started raising them under Trump to dampen a surging economy. COVID was used as an excuse to spend trillions. Each one percent increase in interest rates adds over $300 billion in annual debt servicing costs. Currently, we are spending $400 billion in debt servicing costs. By the end of the decade it will be a trillion dollars. We are headed for a financial implosion.
“Notice how no one at the Fed ever calls for the federal government to do their part to economy.”
The Chairman of the Fed routinely appears before Congress and advises them. The Fed is also a creation of Congress and has zero authority to order Congress to do anything.
“Fed rate hikes will be a contributing factor. But, like you wrote, it probably won’t fix inflation.”
Rate hikes killed inflation when Paul Volcker raised them to record heights from August 1979 until August 1982.
“During the Obama/Biden Administration they held interest rates artificially low.”
That started during Bush II right after 9-11.
Fed rates had been 6.25% in 2000.
Greespan drove rates below 2% after 9-11
Rates climbed back to 5% in 2006
After the 2008 financial crisis rates dropped below 0.2% and remained there until 2015
During the entire Reagan administration rates never got as low as 6%
https://www.macrotrends.net/2015/fed-funds-rate-historical-chart
Depression by design...
Why?
Because of the banking laws that permit fractional reserve lending, as they are written now. It allows a massive amount of fiat money to be created through lending and deposits across different banks. If your reserve requirement is higher, banks keep more physical money on premises to cover cash withdrawls, which means they loan out less money. A more conservative less risk position. If the reserve requirement is lower, they loan more out, but have less cash in the vault to cover those loans and deposits.
Very low reserve requirements allow for a lot of money creation out of nothing.
Guess what the american banking system reserve requirement is right now?
Zero percent.
https://www.federalreserve.gov/monetarypolicy/reservereq.htm
None of your deposits in your bank, has to be covered on premises with cash money for withdrawls.
They can’t cover even a small percentage of people withdrawing their money from the banks.
Its why atms either arent full anymore or why you have weird limits on withdrawals. California banks have been doing this for awhile now. Other places too.
They will continue to jab even if it means killing people. See a pattern?
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