FED Chairman Jerome Powell thinks he has tools at his disposal to stop inflation while Congress works on another $3.5 trillion bill that will provide nothing for average Americans and send the economy even closer to collapse.
Federal Reserve Chairman Powell is still lost.
Federal Reserve Chair Jerome Powell struck a stance of cool defiance when it comes to concerns over inflation surging.
Powell said Wednesday that he expects inflation, which has been rising by much more than expected for the past four months, “will likely remain elevated in coming months” before “moderating.”
This is an indication that the Fed is not ready to change course from its declared plan to keep rates low for an extended period of time even though growth and inflation are running hotter than expected.
In testimony before the House Financial Services Committee, Powell faced many questions, particularly Republicans, about whether the Fed was being cavalier in ignoring higher than expected inflation. Democrats too challenged Powell to better explain why he is not worried about escalating prices, especially in the housing market, where escalating prices have put homes out of reach for lower income Americans in many areas.
“If we see that inflation is moving up or on a path to be well above our goals or the risk of sending on us on a path of high inflation, then we will use our tools to guide it back down. So in the end it will be transitory,” Powell said. “People need to have faith in the central bank that we will do that.”
Either Powell is crazy or biased or both. The FED as well. After keeping rates at 0% for 7 of Obama/Biden’s 8 years in office, they immediately began raising rates up once President Trump was in office. Powell raised rates after the stock market dropped 10% in late 2018 which was caused by Powell raising rates. Powell came very close to crashing the economy and no doubt this was his plan. He didn’t want to see President Trump’s economy succeed.
Had Powell kept the rates low, President Trump could have paid off debt in his first few years, but Powell and the FED would have none of it. It was as if the FED wanted to kill the incredible Trump economy.
Now with Biden/Obama back in power, the rates are again at 0%.