Posted on 08/26/2022 11:29:50 AM PDT by socialism_stinX
Federal Reserve Chairman Jerome Powell delivered a stern commitment Friday to halting inflation, warning that he expects the central bank to continue raising interest rates in a way that will cause “some pain” to the U.S. economy.
In his much-anticipated annual policy speech at Jackson Hole, Wyoming, Powell affirmed that the Fed will “use our tools forcefully” to attack inflation that is still running near its highest level in more than 40 years.
Even with a series of four consecutive interest rate increases totaling 2.25 percentage points, Powell said this is “no place to stop or pause” even though benchmark rates are probably around an area considered neither stimulative nor restrictive to growth.
(Excerpt) Read more at cnbc.com ...
Rally? The market is up only 1,000 pts from Jan 2021!
I didn’t say increasing velocity of money is a cause of inflation. I said that back in the 70s, increasing velocity of money was a sign that monetary policy wasn’t too loose and interest rates weren’t too low back then.
Mini wheelbarrow avoidance going higher.
R E T E N M A R K.
But they’re attempting mass taxation first.
And maybe another $5-10T in Nancybucks printed before New Years Day for special relief of ...things. Pesky inflation just won’t go away.
Good point. As a nation, we have so much debt that we can’t afford to pay more than about 2.5% interest on 10-year treasury bonds, in the long term. So the Fed can’t keep the Fed funds rate above 3% for more than a few quarters. They’ll bring actual inflation down to about 3.25%, and then use statistical adjustments at the BLS to bring reported inflation down to around 2.4%, and then say that’s low enough.
An end to the stupid war in the Ukraine and restrictions on Russian exports of natural gas will eventually help to bring down energy prices and inflation.
But we just spent $2T on the inflation reduction plan and $500B for student loan cancelation in just the past few weeks.
Wasn’t that suppose to alleviate any pain going forward?
Pain ahead and pain in the rear.
Describes the chief crooked pervert clown.
I’m talking about Biden’s first year in office, when the S&P 500 index rallied from around 3300 in election week 2020 all the way up to 4800 at the end of last year. We’re way down from that all-time high now, because of war in the Ukraine, a surge in inflation, and the Fed raising interest rates.
We can’t hit all the fat pitches, we all just do the best we can. I stay out of much of the market, I’ve always been an energy guy and dividend hound for the most part. And land, I like land. Looking forward to the opportunities that are coming.
Powell is an unqualified idiot. He is dishonest. Yes, there will be pain. Lots of pain, over and over again. Does anyone want honesty? Powell doesn’t have the testicular fortitude to be honest. He’s an ignorant pussy. The Fed can only do so much. It will take a concerted effort on multiple fronts to fix the economy. Powell won’t say that.
Powell won’t say that government spending needs to be massively slashed. As long as the government keeps spending the way it has, the Fed will have to print more money. That causes inflation. It negates any interest rate hike. Thus, we will have a cycle of spend and inflate for years if government spending Isn’t slashed.
Powell won’t say that regulations need to be massively reduced; almost totally eliminated. Lazy ass government employees that never had a real job and know zero about business should not be making regulations. They are not elected. They are worthless pieces of excrement that need to be unemployed. Their ignorance not only costs the taxpayer in term of having to pay their salaries, it also costs the consumer when purchasing any good or service. Regulations increase the cost of business operations. It reduces productivity. Regulations cause inflation.
Powell doesn’t have the guts to say that individual workers need to be more productive. When businesses have productive employees labor costs go down per unit of good or services produced. Increased supply over demand reduces inflation when the supply costs less than in the past.
Powell isn’t honest enough to call out the morons that do the bidding of a retarded teenage Swedish girl. There is zero sanity in our energy policy. Our energy policies cause inflation. Cheap domestic energy reduces the cost of every part of the supply chain. It makes every good and service less expensive.
Powell doesn’t have the intelligence to understand how tax policy causes inflation. The method which taxation forcibly confiscates money from hardworking Americans and business increases the cost of every good and service. Tax policy creates inflation. Very intelligent and skilled tax accountants and lawyers cost business billions just to comply with the tax code. Not only are business taxes passed on to consumers, but the massive expense to comply and file taxes. These accountants and lawyers could be better employed actually doing something productive. Their intelligence is being wasted to pay lazy ass government employees.
Powell has zero knowledge about foreign policy and the cost to the American economy. Forever wars and proxy wars that do not increase security cost trillions of dollars. Those trillions need to be printed by the Fed. That increases inflation. It actually makes Americans less safe.
Powell is so spineless that he won’t talk about the pain of ordinary Americans bare because the invasion of our southern border. Every single one of these wetbacks makes every facet of American life more expensive. Wetbacks cause inflation. They make schools mores expensive. They make healthcare more expensive. They make law enforcement more expensive. They make prisons more expensive. Wetbacks affect every aspect of the economy. Hardworking Americans pay for wetbacks.
Powell doesn’t have the experience, knowledge or the moral makeup to be honest and present the solutions needed to improve the American economy. Likewise, the entire Biden administration is clueless. The vast majority of Congress, Democrats and RINOs, have no idea what needs to be done. All of the above are worthless pieces of excrement and need to be unemployed. It time to punish the people responsible. Massive unemployment is the next result of their incompetence. Not a single lazy ass government employee will lose his job. It will be hardworking Americans that pay the bills for worthless government types and the deep state.
Powell isn’t by himself, he’s just the spokesman for a group of Fed governors. They all get input and a vote. And the Fed head is supposed to stay out of the govt’s lane. The president and congress are responsible for running the country and the FED does whatever it can with what it’s given, which has been triage for decades now.
Our job is similar, we deal with the hand we are dealt. Over the last 70 years that’s been a lot of good economic times and 9 recessions. Vaguely free economies like this one expand and contract on a regular basis, but few prepare for the contractions, which are the doors to the next set of good opportunities.
When we all finish griping about the FED and the govt we still have the same challenge in front of us, doing the best we can given the circumstances. The good part is, over the last 45 years that I’ve watched, there have been plenty of opportunities to prosper over time, thank goodness.
More good times are coming, it’s just going to take a little patience.
I got news for ya. We’re in a recession. The data shows it. Even the left is calling it a “technical recession” now after denying it up and down after the second quarter numbers were released. This thing is being held together with bailing wire and bubble gum to get the commies through the mid-terms. 50% of large companies have already warned that layoffs will start 90 days hence.
After the election the economy is going hyperbolic, and not in a good way. Energy will skyrocket as well as inflation when the Biden asshat spending will produce it’s result. No amount of tightening or loosening for that matter will stop it. Employment will tank and the “death spiral” will ramp up.
I hope I’m wrong but I doubt it. I’ve lived through times like this before when the U.S. was in a far better position to recover and it took the better part of a decade to begin to pull out. Enjoy your “great reset” because the left has done a fine job of bringing it on.
Ripe for Hitler’s children.
Some pain ahead - what a turd. Economically we have been in a recession since brandon and friends stole the election. They are treating me and the middle class as slaves with wallets. I am having a slow hurtful retirement thanks to THEM.
We may already be in a recession. Most economists say that evidence of a real recession includes a drop in hiring and a substantial increase in unemployment, and we haven’t seen that yet. But that may happen later this year or early next year. Home building is in a recession now and production of motor vehicles is close to a recession. That may spread to the broader economy in the next few months if the Fed continues to raise interest rates and drives the Federal funds rate above 3%.
Now and the 1970’s both also saw huge jumps in energy costs.
Inflation example: I was shopping in WAL*MART for groceries today (WAL*MART haters here should note the WAL*MART I shop at has the lowest prices in town except, maybe, for Aldie’s).
A bag of mixed greens for salad has been $.98 for as long as I can remember and is a regular on my shopping list. Imagine my surprise when I discovered the shelf price is now $1.78. That is an almost 100% jump in price.
Attention government: here’s an easy 2 step process to rein in inflation: 1. Quit printing money. 2. Quit spending money on these ridiculous progressive schemes.
Outstanding post.
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