Powell’s progress
Jerome Powell spoke today from our nation’s capital and suggested what everyone knows to be true. No business reduction rate At the moment.
“Recent data clearly does not give us much confidence, and instead indicates that it will likely take longer than expected to achieve that confidence,” the Fed chairman said. Said He spoke on a moderated panel discussion at the Wilson Center in Washington.
He may be understating it here, but overall he’s good.
He went on to say:lack of further progress So far this year, progress is being made to return to the 2% inflation target. ”
Federal Reserve Chairman Jerome Powell speaks at the Wilson Center in Washington, DC, on April 16, 2024. (Samuel Corum/Bloomberg via Getty Images)
Now, wait a minute. “Lack of further progress”? Last week’s inflation data suggests that Bidenflation is not just stagnant. It’s actually coming back. This particular phrase is like declaring “I’m not making any progress on my fitness goals” right after eating an entire birthday cake.
Among those who understand this phenomenon, Black Rock’s Larry FinkHe said Friday that the Fed’s 2% inflation target is far from being met, and that its massive spending plans are the main culprit.
“We have restructured the way we frame economic policy. We have $1 trillion fiscal stimulus CHIPS Act, Infrastructure Act, and [Inflation Reduction Act]. Our legal immigration policies are woefully inadequate and restrictive, all of which contribute to employment inflation,” said the WEF Director.
It’s hard to ascertain how happy Mr. Fink is about inflation and these big spending plans, but he doesn’t deny that they cause inflation.
(If you are keeping score at home, Joe Biden and the Democratic Party Who is responsible for everything? )
“As much as you need”
Return to Powell on Tuesday. “If inflation continues to rise, the current level can be maintained,” he said. [interest rates] for as much as you need”
“As long as necessary”
It’s pretty declarative.
Mr. Powell has gradually improved his condition. More hawkish on future rate cuts In the last few weeks. Fed officials had expected a rate cut of three quarter points this year. Others on Wall Street believed there could be as many as six rate cuts in 2024. Powell himself suggested as recently as early last month that it was “not long” before the Fed took action.
And yet, here we are today.
Clearly, he saw the light, or more likely the data, that rising inflation and other macroeconomic numbers showed. The politically neutral Fed has no intention of cutting interest rates for now.you’re probably looking at mid-to-late summer as your first possible opportunity.
This is Breitbart In Business Digest, all elements are politics and bureaucracy Washington wants Joe Biden to beat Donald Trump in the November election, and lower interest rates will make it easier for Joe to win. So look for politicians and media speakers trying to come up with some rationale for making Fed cuts happen.
It will be interesting to see what arguments they come up with, given the evidence that cuts are the right move at this point. not exist.
