the staff of the Ridgewood blog
Jackson Hole Wy, Fed Chairman Jerome Powell says the US central bank is prepared to raise interest rates even further if need be until inflation is back on track at 2%. “Although inflation has moved down from its peak—a welcome development—it remains too high,” Powell said Friday at the central bank’s annual conference in Jackson Hole, Wyoming. He welcomed the slower price gains the US economy has achieved under tighter monetary policy and loosening supply constraints. However, he cautioned that the process “still has a long way to go, even with the more favorable recent readings.”
Take a Wall Street Tour https://www.facebook.com/
Fed rate hikes will not slow inflation because high interest rates are just another rising cost of business pushed on to consumers and because they bring higher unemployment and therefore crime which is another cost of doing business pushed on to consumers… the only cure for inflation is austerity, cutting government spending.
Raising rates finally worked in 1980 but it won’t work today because of the amount of debt. Inflation is deficit spending. It’s a storm out to sea. Price increases are the waves coming in and they are not measured accurately by CPI. Inflation is being tamed the same way it was “transitory” two years ago. The only way to stop inflation is to cut government spending. Fed speak is designed to hide this simple reality. Powell is the Wizard of Oz. He has no real power. The slippers weren’t green as they were in the movie, in the original work they were SILVER. The yellow bricks were GOLD. Silver and gold took Dorothy back to reality.
The fed should stop and wait