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  • Powell: Clueless on Inflation

    From srikonomics.substack.com

    To no one’s surprise, the Federal Open Market Committee lowered the Federal Funds rate by 25 basis points on Wednesday. The suspense, as last week’s SriKonomics discussed, had been only on how Federal Reserve Chairman Jerome Powell would explain his mutually contradictory conclusions — that inflation was more elevated than the central bank had forecast, while at the same time easing policy. He did not disappoint as I watched his post-FOMC press conference. He provided no explanation that made sense. Powell admitted that recent inflation was running at a pace faster than expected. However, the Chairman said, ... (full story)

  • #1
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  • Dec 22, 2024 8:56am Dec 22, 2024 8:56am
I said they're going to regret lowering interest rate; will see how it plays out next year.
  • #2
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  • Dec 22, 2024 9:28am Dec 22, 2024 9:28am
  •  Trader#0D54
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The presidents administration's policies and actions have more influence on inflation than rates. If the gov't continues to print money and spend like crazy, inflation will never come down. But.... the next admin on Jan 20 should start to change that.
  • #3
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  • Dec 22, 2024 11:04am Dec 22, 2024 11:04am
Yada, yada yada. Will he, won't he? Provides a rich materials for pundits and "experts" to spout nonsense.
The inflation target of 2% is purely artificial and arbitrary as it could be just as well 1% or 3%.

The 2% inflation target is there merely to protect us against the dreaded disinflation when the prices drop uncontrollably, the producers and retailers cannot recover their costs and a wave of bankruptcies ensues.
  • #4
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  • Dec 22, 2024 3:55pm Dec 22, 2024 3:55pm
The single most revealing statement this Man has ever made....... "We create it digitally"
"The Rich Never Pay Retail"
  • #5
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  • Dec 22, 2024 8:02pm Dec 22, 2024 8:02pm
It's called 'data dependent.'
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  •  Trader#1E9F
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  • Posted: Dec 21, 2024 10:00pm
  • Submitted by:
     Newsstand
    Category: Fundamental Analysis
    Comments: 5  /  Views: 7,093

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