Which Way Wednesday – Biden, Powell and Yellen Pledge to Fight Inflation
“I’m not going to interfere with their critically important work.”
That’s what President Biden said yesterday when meeting with Jerome Powell and Janet Yellen, the current and former heads of the Federal Reserve. This is a strong indication of support for the upcoming Fed Rate Hikes with 2 0.5% hikes expected over the next two meetings.
In theory, that is already baked in by the market and Biden’s support is just another way of showing Wall Street the Administration is serious about tackling Inflation, despite any potential market consequences. The Fed is trying to cool demand to moderate price pressures. But Mr. Powell has conceded that the central bank’s ability to do that without forcing the economy into a recession depends on developments outside the central bank’s control, including global energy markets that have been badly disrupted by Russia’s war in Ukraine and supply chains snarled by the Covid-19 pandemic.
Consumer confidence has slumped amid rising prices of food and gas. Gasoline prices have risen in recent months even as the Biden administration has tapped oil supplies from the U.S. Strategic Petroleum Reserve, releasing one million barrels of Oil (/CL) a day yet oil is still at $116 as of this morning and wholesale Gasoline (/RB) is still over $4/gallon.
Throughout the 1970s, the Federal Reserve both misread the U.S. economy and didn’t believe it had the authority to fight inflation – if that required pushing the economy into a recession. In 1970, President Richard Nixon put a loyal, longtime adviser, Arthur Burns, in charge of the Fed and made clear his low regard for the institution’s autonomy. “When we get through, this Fed won’t be independent if it’s the only thing I do in this office,” he said at the time. Those mistakes prompted the Fed, under Paul Volcker in 1979, to raise interest rates to punishingly high levels, sparking a double-dip recession in the early 1980s that sent unemployment up sharply.
We can certainly afford more Unemployment at the moment as our current problem is not enough workers for the jobs that are available and yes, if you remove Oil increases, food would be lower too as well as…
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Source: https://www.philstockworld.com/2022/06/01/which-way-wednesday-biden-powell-and-yellen-pledge-to-fight-inflation/?utm_source=beforeitsnews&utm_medium=feed&utm_campaign=psw-feeds&utm_content=article-link
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The only way that they can cover up their slavery- counterfeiting scam is to limit new purchases and that is exactly what we are seeing.
When you take out a loan for a car or house or even credit card purchases, that money is created on the spot from nothing, just the click of the key when you sign. That new money then dilutes the purchasing power of saved money and that is why prices keep going up.
This fraud has run it’s course just like the Maddoff scam.
yeah it is suprising that they pulled this bs off for so long–mainly because other countries are doing the same bs–70 percent of all usa dollars are overseas–usa is the best looking of all the ugly sisters.. it will be interesting how it all ends–no debt you will be good i think but if its ww3 we are all fuked
Democrats cannot grasp simple basic economic principles. Those three douchbags couldn’t figure out how to put on their adult diapers correctly.
No Joe! That’s not a hat you put in on your…..ah too late he already pissed himself.