On Friday Jerome Powell spoke to investors in Jackson Hole, Wyoming.
The markets plunged during his talk.
Powell promised pain ahead for American households who are already struggling thanks to the Biden economic policies.
Inflation is at 8.6 percent, gas prices are at record highs under Biden, and the economy is in recession.
Jerome Powell: “(Our) overarching focus is to bring inflation back down to our 2% goal. While higher interest rates will bring down inflation, they will also bring some pain to households and businesses. These are the unfortunate costs of reducing inflation.”
"(Our) overarching focus is to bring inflation back down to our 2% goal. While higher interest rates will bring down inflation, they will also bring some pain to households and businesses. These are the unfortunate costs of reducing inflation."
Jerome Powell à Jackson Hole. pic.twitter.com/za7ETypA8Y
— Jean Louis (@JL7508) August 26, 2022
The markets immediately crashed during Powell’s remarks. The Dow is down 500 points today.
The Fed has been forced to raise interest rates under Joe Biden due to the Democrat Party’s runaway spending. This is something the Fed likes to do only duringr Republican administrations.
As reported earlier… Under Bush and Trump, the Fed increased rates numerous times. Their rate increases in 2006 and 2007 helped exacerbate the 2007 housing bubble crash. Their increases in rates under President Trump almost killed the economy in 2018, the strongest economy in US history. The rates for Obama and in the first months of the Biden regime were at zero with the exception of 2016, when the Fed increased the rates a quarter of a percent. Under President Trump, the Fed increased rates eight times before moving back to zero during the COVID crisis in 2020.