Posted on 07/20/2021 1:45:16 AM PDT by Doofer
Joe Biden has reportedly begged the U.S. Central Bank to curb inflation that has been spiraling out of control under his watch. According to reports on Monday, Biden asked Federal Reserve Chair Jerome Powell to do “whatever it takes” to control inflation.
According to reports, Biden officials have been worried that skyrocketing consumer prices would further erode his waning popular support. U.S. inflation rose 5.4 percent year-on-year this month, which was way above the Federal Reserve’s two percent target.
However, Biden and his officials have refused to admit that inflation poses a problem.
“We’ve seen some prices increases. Some folks have raised worries that this could be sign of persistent inflation. But that’s not our view,” Biden claimed. “As I made clear to Chairman Powell of the Federal Reserve when we met recently, the FED is independent.”
Central Bank experts say the FED could raise interest rates to contain inflation. However, such a move would also increase interest payments on U.S. national debt, which is nearing $30 trillion and could make deficit spending worse.
Like they didn’t already think of that….
Re: Shrinkflation - I rally noticed this after 2008 or so. Lay’s potato chip bags got quite a bit smaller.
The Fed sets short term rates. The market sets medium and long rates.
As long as there are major countries with zero or negative interest rates our debt will have downward pressure on the interest rates the global market for debt will accept.
That’s a double edged sword, as it could weaken our ability to fight inflation as well as overspending.
I see no evidence of a rate hike. This isn’t Paul Volcker, hell it’s not even Jimmy Carter. They’d have to taper first and one barely sees evidence of a taper especially after the recent catastrophic stock market sell off. People also forget that President Trump’s key Fed appointments are up next year including Powell. Odds are higher that Sleepy Joe’s handlers put in some super woke MMT types and inflation gets into double digits.
Sorry biden but this is their time to collapse the US. It’s their half a century long goal so don’t expect them to stop now when they’re close to meeting that goal
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