{"id":60976,"date":"2021-12-16T12:46:42","date_gmt":"2021-12-16T17:46:42","guid":{"rendered":"https:\/\/olduvai.ca\/?p=60976"},"modified":"2021-12-16T12:46:42","modified_gmt":"2021-12-16T17:46:42","slug":"chairman-powell-paralyzed-with-fear-as-inflation-takes-over","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=60976","title":{"rendered":"Chairman Powell Paralyzed With Fear As Inflation Takes Over"},"content":{"rendered":"
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Chairman Powell Paralyzed With Fear As Inflation Takes Over<\/a><\/h3>\n<\/div>\n
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\"Chairman<\/p>\n
Public domain, courtesy of the\u00a0Federal Reserve<\/a><\/span><\/div>\n<\/div>\n

One thing is certain, inflation is no longer\u00a0officially<\/em>\u00a0\u201ctransitory.\u201d<\/p>\n

For months, recently reappointed Federal Reserve Chairman Jerome Powell kept telling the public that rising inflation was transitory, and would soon subside.<\/p>\n

It hasn\u2019t, and isn\u2019t likely to in the near future either. So the next natural question to think about is:\u00a0What now, Chairman Powell?<\/strong><\/p>\n

With\u00a0four major pivots in monetary policy<\/a>\u00a0over a short three years, according to CNBC, both Powell and the Fed he leads seem confused about what to do next:<\/p>\n

At its two-day meeting next week, the Fed is expected to say it will double the pace of its bond purchase taper, while also likely hinting at more aggressive interest rate hikes coming in 2022. The moves are coming in response to inflation that is stronger and longer-lasting than Fed officials had anticipated.<\/p>\n

But [Joseph] LaVorgna worries that\u00a0the Fed, after months of calling inflation \u201ctransitory,\u201d is now making the mistake of overestimating its duration and tightening at the wrong time.\u00a0<\/strong>That could necessitate officials again having to change back next year,<\/strong>\u00a0if the current inflation trend runs out of steam. [emphasis added]<\/p><\/blockquote>\n

Powell\u2019s remarks revealed his confusion<\/a>\u00a0about the economy, and why he chose the word \u201ctransitory\u201d in the first place:<\/p>\n

\u00a0\u201cWe tend to use it to mean that it won\u2019t leave a permanent mark in the form of higher inflation,\u201d he told the Senate Committee.\u00a0\u201cI think it\u2019s probably a good time to retire that word and try to explain more clearly what we mean.\u201d<\/strong><\/p><\/blockquote>\n

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

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Chairman Powell Paralyzed With Fear As Inflation Takes Over Public domain, courtesy of the\u00a0Federal Reserve One thing is certain, inflation is no longer\u00a0officially\u00a0\u201ctransitory.\u201d For months, recently reappointed Federal Reserve Chairman Jerome Powell kept telling the public that rising inflation was transitory, and would soon subside. It hasn\u2019t, and isn\u2019t likely to in the near future […]<\/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":[18769,303,426,16888,534,13351,3650],"class_list":["post-60976","post","type-post","status-publish","format-standard","hentry","category-economics","tag-birch-gold-group","tag-fed","tag-inflation","tag-jerome-powell","tag-monetary-policy","tag-price-inflation","tag-us-federal-reserve"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/60976","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=60976"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/60976\/revisions"}],"predecessor-version":[{"id":60977,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/60976\/revisions\/60977"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=60976"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=60976"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=60976"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}