{"id":68133,"date":"2024-05-17T14:49:45","date_gmt":"2024-05-17T19:49:45","guid":{"rendered":"https:\/\/olduvai.ca\/?p=68133"},"modified":"2024-05-17T14:49:45","modified_gmt":"2024-05-17T19:49:45","slug":"how-powell-destroyed-his-inflation-war-as-he-eats-the-poor","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=68133","title":{"rendered":"How Powell Destroyed His Inflation War as he Eats the Poor"},"content":{"rendered":"
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How Powell Destroyed His Inflation War as he Eats the Poor<\/a><\/h3>\n<\/div>\n
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I\u2019m going to save discussion of today\u2019s CPI report for my Deeper Dive this weekend because it requires digging deep into the numbers involved in the report to show why it is\u00a0not<\/em>\u00a0the game-changer for the new trend in inflation that the stock market made it out to be today. Not even close. It could, of course,\u00a0become<\/em>\u00a0a first blip in the direction of a new downward trend against the rising trend for inflation that has held all year, but this year\u2019s trend, so far, remains firmly anchored.<\/p>\n

Even Minneapolis Federal Reserve Bank President Neel Kashkari said today, after the CPI report came out,\u2026<\/p>\n

that\u00a0he is unsure how restrictive monetary policy is right now<\/strong>, and that borrowing costs should stay where they are as U.S. central bankers take stock of inflation.\u00a0“The biggest uncertainty in my mind is how much downward pressure is monetary policy putting on the economy? That’s an unknown,<\/strong>” Kashkari told the Williston Basin Petroleum Conference in Bismarck, North Dakota. “And\u00a0that tells me we probably need to sit here for a while longer until we figure out where underlying inflation is headed before we jump to any conclusions<\/strong>.”<\/p><\/blockquote>\n

In fact, another article out today claims, as I\u2019ve been claiming here, that Fed policy is not restrictive at all; and that\u2019s the interesting point for the day I want to focus on as I think the article says it well:<\/p>\n

Time and again,\u00a0Jerome Powell\u00a0<\/strong><\/em>has made it clear. Financial conditions, the Federal Reserve\u2019s key lever for cooling the US economy,\u00a0<\/strong>are tight.<\/strong><\/em><\/p><\/blockquote>\n

HOWEVER \u2026<\/strong><\/p>\n

After an $11 trillion rally in US equities since late October \u2014 and the sudden revival of meme-stock fever \u2014\u00a0many on Wall Street think he\u2019s dead wrong. Not only are popular gauges of the investing climate<\/strong>\u00a0famously loose\u00a0<\/strong><\/em>\u2014 some are\u00a0<\/strong>looser than before the Fed kicked off its historic monetary-tightening campaign more than two years ago.<\/strong><\/em><\/p><\/blockquote>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

How Powell Destroyed His Inflation War as he Eats the Poor I\u2019m going to save discussion of today\u2019s CPI report for my Deeper Dive this weekend because it requires digging deep into the numbers involved in the report to show why it is\u00a0not\u00a0the game-changer for the new trend in inflation that the stock market made […]<\/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":[15374,172,34258,11574,195,303,431,534,13351,3650],"class_list":["post-68133","post","type-post","status-publish","format-standard","hentry","category-economics","tag-consumer-price-inflation","tag-cpi","tag-daily-doom","tag-david-haggith","tag-debt","tag-fed","tag-interest-rates","tag-monetary-policy","tag-price-inflation","tag-us-federal-reserve"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/68133","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=68133"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/68133\/revisions"}],"predecessor-version":[{"id":68134,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/68133\/revisions\/68134"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=68133"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=68133"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=68133"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}