{"id":64440,"date":"2022-12-12T07:30:37","date_gmt":"2022-12-12T12:30:37","guid":{"rendered":"https:\/\/olduvai.ca\/?p=64440"},"modified":"2022-12-12T07:30:37","modified_gmt":"2022-12-12T12:30:37","slug":"what-does-the-feds-jerome-powell-have-up-his-sleeve","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=64440","title":{"rendered":"What Does the Fed\u2019s Jerome Powell Have Up His\u00a0Sleeve?"},"content":{"rendered":"

What Does the Fed\u2019s Jerome Powell Have Up His\u00a0Sleeve?<\/a><\/h3>\n
\n

The Real Goal of Fed Policy: Breaking Inflation, the Middle Class or the Bubble Economy?<\/strong><\/p>\n

\u201cThere is no sense that inflation is coming down,\u201d\u00a0said Federal Reserve Chairman Jerome Powell<\/a>\u00a0at a November 2 press conference, \u2014 this despite eight months of aggressive interest rate hikes and \u201cquantitative tightening.\u201d On November 30, the stock market rallied when\u00a0he said<\/a>\u00a0smaller interest rate increases are likely ahead and could start in December. But rates will still be increased, not cut. \u201cBy any standard, inflation remains much too high,\u201d Powell said. \u201cWe will stay the course until the job is done.\u201d<\/p>\n

The Fed is doubling down on what appears to be\u00a0a failed policy<\/a>, driving the economy to the\u00a0brink of recession<\/a>\u00a0without bringing prices down appreciably. Inflation results from \u201ctoo much money chasing too few goods,\u201d and the Fed has control over only the money \u2013 the \u201cdemand\u201d side of the equation. Energy and food are the\u00a0key inflation drivers<\/a>, and they are on the supply side. As\u00a0noted by Bloomberg columnist Ramesh Ponnuru \u00a0in the Washington Post<\/a>\u00a0in March:<\/p>\n

Fixing supply chains is of course beyond any central bank\u2019s power. What the Fed can do is reduce spending levels, which would in turn exert downward pressure on prices. But this would be a mistaken response to shortages. It would answer a scarcity of goods by bringing about a scarcity of money. The effect would be to compound the hit to living standards that supply shocks already caused.<\/p><\/blockquote>\n

So why is the Fed forging ahead? Some pundits think Chairman Powell has something else up his sleeve.<\/p>\n

<\/span><\/p>\n

The Problem with \u201cDemand Destruction\u201d<\/strong><\/p>\n

\u2026click on the above link to read the rest\u2026<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

What Does the Fed\u2019s Jerome Powell Have Up His\u00a0Sleeve? The Real Goal of Fed Policy: Breaking Inflation, the Middle Class or the Bubble Economy? \u201cThere is no sense that inflation is coming down,\u201d\u00a0said Federal Reserve Chairman Jerome Powell\u00a0at a November 2 press conference, \u2014 this despite eight months of aggressive interest rate hikes and \u201cquantitative […]<\/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":[2019,6716,303,431,16888,534,13351,3650,7693],"class_list":["post-64440","post","type-post","status-publish","format-standard","hentry","category-economics","tag-demand-destruction","tag-ellen-brown","tag-fed","tag-interest-rates","tag-jerome-powell","tag-monetary-policy","tag-price-inflation","tag-us-federal-reserve","tag-web-of-debt"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/64440","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=64440"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/64440\/revisions"}],"predecessor-version":[{"id":64441,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/64440\/revisions\/64441"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=64440"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=64440"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=64440"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}