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2022-06-30 Home Front: Politix
Fed Chairman Powell Realizes ‘How Little We Understand About Inflation'
[Breitbart] Federal Reserve Chairman Jerome Powell admitted on Wednesday how little he understands soaring inflation.

"I think we now understand better how little we understand about inflation," Powell stated at the European Central Bank forum on central banking in Sintra, Portugal. "This was unpredicted," the expert admitted.

Powell is in charge of reducing President Biden’s 40-year-high inflation by a difficult process of increasing interest rates. By law, the Federal Reserve is charged with a dual mandate of pursuing maximum employment and stable prices.

"We believe we can do that. That is our aim," he said. "It’s gotten harder... the pathways have gotten narrower."

"The process is highly likely to involve some pain but the worst pain would be from failing to address this high inflation and allowing it to become persistent," he continued.
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Posted by Besoeker 2022-06-30 01:15|| E-Mail|| Front Page|| [1826 views ]  Top

1 "...But we're gonna screw with things till we fix it! You may, of course, feel some discomfort..."

Mike
Posted by MikeKozlowski 2022-06-30 06:22||   2022-06-30 06:22|| Front Page Top

2 Increasing demand by printing and distributing money plus strangling supply by means of lockdowns and environmental mandates equals inflation.

I am truly shocked, shocked!
Posted by Elmerert Hupens2660 2022-06-30 06:24||   2022-06-30 06:24|| Front Page Top

3 Credentialed not educated.

Basics 101
Posted by Procopius2k 2022-06-30 07:13||   2022-06-30 07:13|| Front Page Top

4 /\ Credentialed, not educated.


Appears to be something of a modern trend.
Posted by Besoeker 2022-06-30 07:14||   2022-06-30 07:14|| Front Page Top

5 data not available for a few week but forecasts are that M1 will shrink quite a bit from 2022 Q1 to 2022 Q2

unfortunately a lot of inflation is baked in so a return to 2%/yr inflation (which is the Fed Reserve target) isn't likely until 2023 at best
Posted by Lord Garth 2022-06-30 07:26||   2022-06-30 07:26|| Front Page Top

6 Powell isn't responsible for what the Harris-Biden Administration has done. Powell can't drill for oil or drive a truck or open up more/better supply lines.

And this isn't a monetary inflation--yet. When you look at the velocity of M2 it's been decreasing despite all of the trillions "printed" by the Fed.
Posted by DooDahMan 2022-06-30 08:21||   2022-06-30 08:21|| Front Page Top

7 And remember when that numbskull Janet Yellen said on TV some months ago that she was monitoring inflation "closely". I wonder what size clown shoes that hack wears.
Posted by DooDahMan 2022-06-30 08:26||   2022-06-30 08:26|| Front Page Top

8 Proof you don't need to be bright to fail upwards. Just kiss the right ass.
Posted by DarthVader 2022-06-30 08:35||   2022-06-30 08:35|| Front Page Top

9 Some thousand years of modern banking theory, with an emphasis on the last fifty - if they don't know it is because they don't want to know, don't care to know, and won't listen to those who do know.

There is no excusing your way out of this.
Posted by swksvolFF 2022-06-30 10:05||   2022-06-30 10:05|| Front Page Top

10 Ludwig Von Mises understood it just fine. Even wrote a few books I hear. Powell could even read one.
Posted by Secret Master  2022-06-30 10:16||   2022-06-30 10:16|| Front Page Top

11 ^^The M2V refers to tracking how often dollars are used to purchase DOMESTICALLY made goods and services within a certain time-frame.

People haven't been spending a lot of money since the second quarter of 2020 (for one mysterious reason or another). Something about massive layoffs around that time, too.

They're certainly not buying cars or other big-ticket domestically produced items at any great rate or going out to eat 2-3 times a week (at least in my neck of the woods and prairie).

Chinesium products from Wokemart aren't considered 'domestic'. Don't know about payments to advocacy groups, 'charities' or 'movements', however.

All this results in a lower frequency of currency usage for domestic goods and services.

You will notice that, on the FRED M2V chart 1YR tab, that 4th quarter 2021 did bump up some as it normally does around the holidays.

DooDahMan, I don't know for certain where all that extra printed cash went or how it was used, but I have some pretty good ideas.
Posted by Mullah Richard 2022-06-30 10:23||   2022-06-30 10:23|| Front Page Top

12 I'm not certain, but I imagine a lot of the "printed" (actually digital) dollars went to purchase the stuff on the Fed's balance sheet.
Posted by M. Murcek 2022-06-30 10:31||   2022-06-30 10:31|| Front Page Top

13 Ya'll have said everything I wanted to say.
Posted by AlmostAnonymous5839 2022-06-30 10:38||   2022-06-30 10:38|| Front Page Top

14 Stock market sure had a nice run. Hmmmm.

I read somewhere that the Fed's original (current?) charter was for it to buy corporate bonds, not T-bills, etc. That got corrupted by Thomas "Woodrow" Wilson or FDR.
Posted by DooDahMan 2022-06-30 10:40||   2022-06-30 10:40|| Front Page Top

15 Biden says Americans will pay high prices for 'as long as it takes' and again blames Putin for surging food and gas costs: President insists U.S. is NOT going backwards, inflation is 'higher' in every country and 'we have the strongest economy'
Posted by Skidmark 2022-06-30 12:50||   2022-06-30 12:50|| Front Page Top

16 Raging US inflation is FAR WORSE than we're being told: If the government calculated price increases the same way it did in the 1980s, we'd ALREADY be in Jimmy Carter territory, write former restaurant empire CEO ANDY PUZDER and ex-senator JIM TALENT
Posted by Skidmark 2022-06-30 12:51||   2022-06-30 12:51|| Front Page Top

17 Of a piece with grade inflation and calling 25 year old gang-bangers "children" for gun-violence statistic purposes.
Posted by M. Murcek 2022-06-30 12:55||   2022-06-30 12:55|| Front Page Top

18  Biden says Americans will pay high prices for 'as long as it takes' and again blames Putin for surging food and gas costs

Well, with Trump out of office he's gotta blame on somebody.
Posted by Abu Uluque 2022-06-30 13:15||   2022-06-30 13:15|| Front Page Top

19 Speak for yourself, Jerome. Or go back and read your Econ 101 textbook where it says, MV = PQ.
Posted by Tom 2022-06-30 13:17||   2022-06-30 13:17|| Front Page Top

20 When I was at the Libertarian Convention, I went to a Mises Caucus event and listened to Ron Paul speak. At 86 he was more coherent - and more interesting - to listen to than Joe Biden, Nancy Pelosi, or any of the rest of the octogenarian crowd in DC. (A low bar admittedly.)

One thing which he said which stuck with me was "Nobody running the Federal Reserve knows anything - especially about the Federal Reserve! Most of you in the crowd probably know more about the Federal Reserve than they do." Prescient words from one of our eldest eldest statesmen as it turns out.
Posted by Secret Master 2022-06-30 16:22||   2022-06-30 16:22|| Front Page Top

21 we = Democrats
Posted by ruprecht 2022-06-30 16:28||   2022-06-30 16:28|| Front Page Top

22 Powell shouldn't be in the job if he doesn't understand the problem. We have too many of these pogues. The people tasked with solving supply chain problems, border problems, drug problems, crime problems, etc; you name them and they are inept thanks to this illegally installed cue-card POTUS.
Posted by JohnQC 2022-06-30 16:29||   2022-06-30 16:29|| Front Page Top

23 Deep State is still trying to process tax returns filed in 2021 for 2020. They have not started on returns filed in April for last year.
Posted by Black Charlie Slairt1430 2022-06-30 16:44||   2022-06-30 16:44|| Front Page Top

24 BCS,

The IRS has processed over 50% of returns for tax year 2021 that were e-filed by April 18 2022.

That's pretty weak but not as bad as your comment implies.
Posted by Lord Garth 2022-06-30 17:52||   2022-06-30 17:52|| Front Page Top

25 I had to form an S-Corp to resume work post-retirement in C (Fuck you, Lorena Gonzalez and AB 5!) (btw an LLC seems to be the better choice in hindsight) via Legal Zoom. It has cost me $$ in compliance for no return
Posted by Frank G 2022-06-30 20:51||   2022-06-30 20:51|| Front Page Top

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