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 Feds annual Jackson Hole, Wyoming, conference.
He is expected to outline what could be the central banks 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 Volckers 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 theres a need to loosen policy.
Thats why Powell, who will speak Thursday during a virtual version of the Feds annual Jackson Hole, Wyoming, conference, will outline what could be the central banks 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 ...
So he prints a few Trillion extra to see us through the Covid 19 shutdown and NOW he admits we might have a little bit of inflation? Econ 1 exam question: When more money is chasing less goods and services prices do what?
Since live cats purr, if we make purring sounds above a dead cat, it will surely come back to life.
The deep state is not finished with us yet.
Per Algore:
“What is up, should be down and what is down should be up...”
What?
They cannot help unemployment by making it more expensive for businesses to operate.
That will cause even higher unemployment.
Deflation would help unemployment and NOT inflation.
Fire up the Printing Presses, we all gonna be rich!! Did he comment on any plans to add a ZERO to our currency in January??
Haha! Yeah no kidding right?
I assume we really have too much deflation.
Which is why the Fed is committed to keep interest rates as low as possible and is willing to accept a rise in inflation in order to do that. If it's cheaper to borrow then business can expand and add on staff. You fight inflation by cooling down expansion and you do that by raising interest rates.
It kills savers and bails out the indebted.
And erodes the value of those holding the public debt.
Of course they will deliberately stimulate inflation.
If they can anymore.
I thought they were already trying with everything they already have. Negative interest rates. Hell, they’ve even resorted to helicopter money. Stock market intervention. Purchase of private debt.
What else is there? Uh oh...
Universal debt holiday.
Home prices will fall, because mortgage rates will go up.
Higher interest rates suck excess money out of the economy. Except banks are not lending so there is not a lot of excess cash out there.
“So the Feds action would have to have an almost instantaneous effect - and that just never happens except when they funnel money to banks to buy stocks (but that doesnt help UE).”
See post #31.
Nope the Fed decreasing the purchasing power of the average American, and increasing the cost to do business is NOT a good thing for anyone.
It will also make the void between the highest and lowest income workers look like it is growing astronomically.
They are killing off the middle class.
This especially will go over well in a country full of rioting and societal unrest.
They are afraid that deflation will be good.
The FED always wants inflation. Who are they kidding?
True. But many around here seem to think the Fed is capable of crashing the economy at 11:23 AM on October 30th just to hurt Trump's chances.
“This especially will go over well in a country full of rioting and societal unrest.”
When the price of Cheezits, Soda and Colt 45 go through the roof, there will be blood in the streets.
If you are working and get salary and wage increases to match, youll come out ok.”
Which means only gov workers.
Time to buy TIPs treasuries?
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