{"id":38371,"date":"2018-09-27T06:52:53","date_gmt":"2018-09-27T11:52:53","guid":{"rendered":"http:\/\/olduvai.ca\/?p=38371"},"modified":"2018-09-27T06:52:53","modified_gmt":"2018-09-27T11:52:53","slug":"the-feds-not-backing-off-powells-standouts-zingers-at-the-press-conference","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=38371","title":{"rendered":"The Fed\u2019s Not Backing Off: Powell\u2019s Standouts & Zingers at the Press Conference"},"content":{"rendered":"
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The Fed\u2019s Not Backing Off: Powell\u2019s Standouts & Zingers at the Press Conference<\/a><\/h3>\n<\/header>\n
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US is \u201con an unsustainable fiscal path, there\u2019s no hiding from it.\u201d<\/strong><\/p>\n

I have to say, Fed Chairman Jerome Powell is a breath of fresh air when he talks, after the near-physical pain I experienced listening to his last three predecessors. I actually get what he is saying, even if it\u2019s a little twisted. I can make out his veiled disdain for fancy but dubious economic theories and iffy forecasts. And I get to look forward to some zingers when I least expect them \u2013 such as at today\u2019s press conference<\/a>, when he valiantly defended the Fed\u2019s preferred inflation measure, core PCE, by saying that it \u201ctends to run a little lower, but that\u2019s not why we pick it.\u201d<\/p>\n

About that wildly ballooning federal deficit:<\/strong><\/p>\n

Even though the question came at the end of the press conference, I\u2019m pulling it to the top because it\u2019s so important. Asked if fiscal policy \u2013 the ballooning deficit, after tax cuts and spending increases \u2013 comes up a lot at FOMC meetings, he said:<\/p>\n

\u201cIt doesn\u2019t really come up. It\u2019s not really our job\u2026. We don\u2019t have responsibility for fiscal policy. But in the longer run, fiscal policy will have a significant impact on the economy, so for that reason, I think, my predecessors have commented on fiscal policy, but they have commented on it at a high level rather than trying to get involved in particular measures.<\/p>\n

\u201cMy plan is to stick to the same approach, and stay in our lane. So I would just say, it\u2019s no secret, it\u2019s been true for a long time, that with our uniquely expensive healthcare delivery system and the aging of our population, we\u2019ve been on an unsustainable fiscal path for a long time. And there is no hiding from it, and we will have to face that, and I think the sooner the better.<\/p><\/blockquote>\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n

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The Fed\u2019s Not Backing Off: Powell\u2019s Standouts & Zingers at the Press Conference US is \u201con an unsustainable fiscal path, there\u2019s no hiding from it.\u201d I have to say, Fed Chairman Jerome Powell is a breath of fresh air when he talks, after the near-physical pain I experienced listening to his last three predecessors. I […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[201,303,13733,14323,16888,18986,3650,4254,4255],"class_list":["post-38371","post","type-post","status-publish","format-standard","hentry","category-economics","tag-deficit","tag-fed","tag-federal-deficit","tag-fiscal-policy","tag-jerome-powell","tag-unsustainable-fiscal-path","tag-us-federal-reserve","tag-wolf-richter","tag-wolfstreet"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/38371","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=38371"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/38371\/revisions"}],"predecessor-version":[{"id":38372,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/38371\/revisions\/38372"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=38371"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=38371"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=38371"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}