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Powell, Yellen Say They Underestimated Inflation And Supply Snarls (M1 Money Grew At 369% With Rates Near Zero Since COVID And They Didn’t See Inflation Coming???)
Confounded Interest ^ | 12/3/2021 | Anthony B. Sanders

Posted on 12/03/2021 5:29:30 AM PST by Browns Ultra Fan

The Dream Team (Fed Chair Jay Powell and Treasury Secretary Janet Yellen) just can’t believe that inflation struck even after M1 Money Stock increased by 369% from March 2020 to today while interest rates remained near zero.

From The Hill: Federal Reserve Chairman Jerome Powell and Treasury Secretary Janet Yellen on Wednesday said they underestimated how quickly the U.S. economy would rebound from the COVID-19 recession and strain supply chains.

During a Wednesday hearing before the House Financial Services Committee, the top two U.S. economic policymakers acknowledged that high inflation has risen higher and lingered much longer than they expected.

“We understood demand would be strong,” Powell said. “We didn’t understand [the] significant problems of the supply side.”

Both Yellen and Powell said substantial fiscal and monetary stimulus played a role in stoking the higher demand that fueled inflation, but they called it a challenging side-effect of an otherwise fast recovery.

Seriously? The Fed and the Federal government dumped trillions of dollars into an economic system and didn’t think there would be negative consequences??

Look at the surge in M1 Money Stock at the same time asset-backed commercial paper rates are 0.08%. That is, about 1/3rd The Fed Funds Target rate (upper bound). None of this concerned The Dream Team?

An example of what The Dream Team didn’t see happening was the explosion of home prices. Home price growth was about 4% YoY prior to COVID, and is now 19.51% YoY.

Now we have the US Treasury Actives curve inverting like the US Dollar Swaps curve after 20 years.

Here is a composite photo of Jay Powell and Janet Yellen (to save space). Here is a video of Powell/Yellen composite trying to control inflation.

(Excerpt) Read more at confoundedinterest.net ...


TOPICS: Business/Economy; Government; Politics
KEYWORDS: dollar; fed; inflation; m1; money; powell; treasury; yellen
"a challenging side effect" is what they call inflation? Those millionaire elitist f***s!
1 posted on 12/03/2021 5:29:30 AM PST by Browns Ultra Fan
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To: Browns Ultra Fan

They both must have skipped school that day or fell asleep in class.


2 posted on 12/03/2021 5:32:54 AM PST by 2 Kool 2 Be 4-Gotten
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To: All
they underestimated how quickly the U.S. economy would rebound from the COVID-19 recession and strain supply chains.

So they just made things too awesome, too fast.
3 posted on 12/03/2021 5:35:32 AM PST by mmichaels1970
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To: Browns Ultra Fan

Grant “the fed that is doubling its balance sheet in 18 months , the treasury that is issuing trillions of dollars in debt the proceeds of which are paying people not to work, the breakdown in supply chains, the constellation of these episodes in phenomenon… what did you expect? “
Inflation is a moral problem is something for nothing. A form of theft. A form of unlegislated tax.
Federal reserve bank of NY leveraged 300:1


4 posted on 12/03/2021 5:36:40 AM PST by griswold3 (When chaos serves the State, the State will encourage chaos)
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To: Browns Ultra Fan

They’re corrupt. Also stupid.

Kakistocracy
A kakistocracy is a government run by the worst, least qualified, or most unscrupulous citizens


5 posted on 12/03/2021 5:37:06 AM PST by Vision (Elections are one day. Reject "Chicago" vote harvesting. Election Reform Now. Obama is an evildoer.)
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To: Browns Ultra Fan

Who could possibly know when too much money is chasing too few goods that prices increase. That must be beyond doctoral level stuff.


6 posted on 12/03/2021 5:42:32 AM PST by pas
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To: Browns Ultra Fan

“a challenging side effect” is what they call inflation?

Compare Powell and Yellen’s words with Alec Baldwin’s below and you see the level of incompetence we are dealing with.

“And I cocked the gun and go, ‘Can you see that? Can you see that? And I let go of the hammer on the gun, and the gun goes off.”


7 posted on 12/03/2021 5:51:29 AM PST by taterjay
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To: Browns Ultra Fan

There’s a rope and a tree waiting.


8 posted on 12/03/2021 5:57:37 AM PST by HighSierra5 (The only way you know a commie is lying is when they open their pieholes.p)
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To: Browns Ultra Fan

Powell, Yellen Say They Underestimated Inflation And Supply Snarls (M1 Money Grew At 369%


Or to put in another way that’s 40% of all money printed in US history.


9 posted on 12/03/2021 5:58:53 AM PST by PIF (They came for me and mine ... now its your turn)
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To: Browns Ultra Fan

“some money did something.”


10 posted on 12/03/2021 6:06:10 AM PST by LS ("Castles made of sand, fall in the sea . . . eventually" (Hendrix) )
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To: Browns Ultra Fan

This is a binary situation and there is only one answer that you get to pick from two choices. Either they are fools, or they think we are.


11 posted on 12/03/2021 6:40:57 AM PST by cuban leaf (My prediction: Harris is Spiro Agnew. We'll soon see who becomes Gerald Ford, and our next prez.)
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To: Browns Ultra Fan

Proving a first year economics student knows more than they do.


12 posted on 12/03/2021 6:43:31 AM PST by jps098
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To: Browns Ultra Fan

Scam...your kids, kids will be slaves.


13 posted on 12/03/2021 6:44:44 AM PST by RckyRaCoCo (Please Pray For My Brother Ken.)
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To: Vision

All you have to do is look at the 30 year chart of the money supply and see how many TRILLIONS of dollars they have pumped into the economy in the last 2 years.

That alone was one of the main causes of inflation.

They are also liars. Any first year economics/finance major could have told you the potential results.


14 posted on 12/03/2021 7:04:33 AM PST by woodbutcher1963
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To: Browns Ultra Fan

Underestimated inflation, overestimated the death toll from Covid. That’s ok they are the government they are doing the best they can with unlimited power and unlimited resources.


15 posted on 12/03/2021 7:30:22 AM PST by webheart (I thought I was helping by getting vaccinated but they say I didn’t help at all. )
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To: Browns Ultra Fan

When I took Economics 101 48 years ago the M1 was closely watched. Today, not so much.


16 posted on 12/03/2021 8:11:07 AM PST by Phlap (REDNECK@LIBARTS.EDU)
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To: Browns Ultra Fan

I knew interest rates were too low but it didn’t register until my son told me about a friend taking a $500,000 loan at 2.1% for 15 years. The payment is about $3,000 a month. That isn’t all that much when you relate it to today’s income. Only a third of $108,000 a year BFIT. It is funny money really and why there is so much inflation in housing prices. The note is funny money if you think inflation will persist.

6% rates will just extend the mortgage term to 30 years with some downward pressure on prices but not much, just shock to those who have never seen 6% rates.

2.1% makes me think about borrowing and buying something until I think about the new vastly inflated tax basis compared to my 15 year-old basis limited to 3% a year increases.


17 posted on 12/03/2021 8:18:24 AM PST by Sequoyah101 (Politicians are only marginally good at one thing, being politicians. Otherwise they are fools.I ha)
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To: Browns Ultra Fan

Yep, and these two are referred to as “experts”.....
Tells ya something, yeah?!


18 posted on 12/03/2021 8:54:52 AM PST by cranked
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