Posted on 08/26/2021 12:30:17 PM PDT by BenLurkin
Among his reasons is a general belief that the economy can withstand a little less help from the Fed. But Kaplan also said he’s concerned about inflation and “excess risk taking” that has led to “distortions” in financial markets, particularly in bonds.
Inflation has been running around multidecade highs in 2021, and Kaplan said rising gas and housing prices are affecting the lower-income communities in his district.
“What we’re seeing in these communities is inflation affects them disproportionately,” he said. “I think at the Fed we have to take that very seriously.”
Kaplan cited the knock-on effects that high housing prices are having on rents.
He also said he is seeing high levels of risk-taking, particularly in the high-yield end of the fixed income markets.
For both those reasons, he thinks it’s time for the Fed to dial back its accommodation.
(Excerpt) Read more at cnbc.com ...
Good for him for naming the 3 major monthly expenses left out of the Fed’s main inflation rate (the CPI): food, gas, and housing. The three things from our expenses that jump the most with inflation.
But...but...Powell told us inflation was transitory.
So, the Fed has 3 mandates, now? Price stability, economic stability and social justice?!
Communists are in charge.
Most Fed Actions and Government actions in general, always hurt the Lower and Middle Incomes the worst. Either this guy was born stupid or he takes a pill everyday to stay stupid.
“What we’re seeing in these communities is inflation affects them disproportionately,” he said. “I think at the Fed we have to take that very seriously.”
and that is NOT taught in EC101?
I see what you did there...
Those are far cuter.
The “shitstorm” is coming. It’s just a matter of when.
I figure after 20% of people get fired for not taking the vaccine, it won’t take long.
Between inflation and the fed will kill my 401k, my future prospects are looking bleak.
Maybe the fools running the Pentagon are advising Powell too...
I just assume I’m working until death.
To be fair, I was “semi retired” from 18-26.
I worked every crap job, partied and chased girls.
Better to enjoy your youth than your diaper years...
Raising interest rates protects the bankers at the expense of everybody else - including Government It does not stop inflation. That lie is promoted to avoid howling mobs dragging bankers out to the nearest highway overpass and stringing them up.
The lie seems to work pretty reliably. It protects bankers and government officials from focused retaliation.
Inflation stops when the government stops issuing new currency in excess of real economic activity. That is the only way it stops.
Failing Governments always debase their currency to fund their continuing operation. That works until it doesn't. Plenty of recent historical examples to learn from. Or not.
It’s that ‘stakeholder’ mumbo-jumbo.
In this case inflation is not just being caused by easy money printing. There are ongoing supply chain disruptions, backlogs at the major ports worldwide, shortages of materials, and rising energy costs. Ocean container costs are 4-5 times what they were 2 years ago, as are of course trucking costs (fuel mostly). Producers who can afford to pay extra are getting priority in shipping; and pass that on to the consumer.
It will be worse, and more evident, in 2022 when retailers who have contracted prices for 2021 reset.
I agree with you totally. I’m merely expressing the mechanics of how they get away with reporting inflation is low so they can keep doing that, all while it’s really running hotter than a ‘78 Chevette low on water. Particularly with how the original Fed mandate was that the Fed is supposed to keep inflation under control.
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