The fed has still done nothing to fight inflation
May 7, 2022 22:05:07 GMT -5
Post by OmegaMan on May 7, 2022 22:05:07 GMT -5
It’s mid-2022 and the fed has still done nothing to fight inflation
Friday, May 06, 2022 by: News Editors
Tags: big government, Bubble, chaos, Collapse, debt bomb, debt collapse, economic collapse, economy, Federal Reserve, finance, Inflation, Jerome Powell, market crash, money supply, panic, risk
This article may contain statements that reflect the opinion of the author
(Natural News) It was last August when Jerome Powell began to admit that inflation just might be a problem. But even then, he was only willing to say that inflation would likely be “moderately” above the arbitrary 2 percent inflation standard. Back in August, low inflation—not high inflation—was still perceived to be the “problem.” But things had certainly changed by late November when Powell was forced by reality to retire “transitory” as the preferred adjective to describe price inflation. At that point, the Fed began strongly hinting that it would finally do something to rein in price inflation. But exactly when that might happen remained anyone’s guess.
(Article by Ryan McMaken republished from Mises.org)
Fed Talks Big, Does Little
Throughout the end of 2021 and into early 2022, the Fed settled into a comfortable pattern of repeatedly stating that it would—at some point—end quantitative easing, and possibly embrace tightening. But such policies have been extremely slow to actually materialize. It was not until late January, for instance that asset purchases at the Fed began to slow. They didn’t stop, of course. They merely slowed. But assets purchases—which function to create new money, prop up asset prices, and generally inflate the money supply—continued in an upward trend well into April. As late as April 13, the Fed’s total assets rose to a new all-time high of $8.965 trillion. There is no sign of any significant decreases to the portfolio, meaning the Fed has taken no steps to actually “normalize” or reverse quantitative easing.
Moreover, increases to the target federal funds rate amounted to exactly one increase—to the tune of 0.25 percent. That is, after many months of talk about rising the target rate, we’re now approaching mid 2022 with a target rate at a paltry 0.50 percent. In recent months, however, the Fed itself repeatedly hinted that it would pursue numerous rate increases in 2022. But the clock is ticking. Even if the Fed increases the target rate fifty basis points at its May meeting, that would put the target rate at only 1.00 percent.
Continued at link
Friday, May 06, 2022 by: News Editors
Tags: big government, Bubble, chaos, Collapse, debt bomb, debt collapse, economic collapse, economy, Federal Reserve, finance, Inflation, Jerome Powell, market crash, money supply, panic, risk
This article may contain statements that reflect the opinion of the author
(Natural News) It was last August when Jerome Powell began to admit that inflation just might be a problem. But even then, he was only willing to say that inflation would likely be “moderately” above the arbitrary 2 percent inflation standard. Back in August, low inflation—not high inflation—was still perceived to be the “problem.” But things had certainly changed by late November when Powell was forced by reality to retire “transitory” as the preferred adjective to describe price inflation. At that point, the Fed began strongly hinting that it would finally do something to rein in price inflation. But exactly when that might happen remained anyone’s guess.
(Article by Ryan McMaken republished from Mises.org)
Fed Talks Big, Does Little
Throughout the end of 2021 and into early 2022, the Fed settled into a comfortable pattern of repeatedly stating that it would—at some point—end quantitative easing, and possibly embrace tightening. But such policies have been extremely slow to actually materialize. It was not until late January, for instance that asset purchases at the Fed began to slow. They didn’t stop, of course. They merely slowed. But assets purchases—which function to create new money, prop up asset prices, and generally inflate the money supply—continued in an upward trend well into April. As late as April 13, the Fed’s total assets rose to a new all-time high of $8.965 trillion. There is no sign of any significant decreases to the portfolio, meaning the Fed has taken no steps to actually “normalize” or reverse quantitative easing.
Moreover, increases to the target federal funds rate amounted to exactly one increase—to the tune of 0.25 percent. That is, after many months of talk about rising the target rate, we’re now approaching mid 2022 with a target rate at a paltry 0.50 percent. In recent months, however, the Fed itself repeatedly hinted that it would pursue numerous rate increases in 2022. But the clock is ticking. Even if the Fed increases the target rate fifty basis points at its May meeting, that would put the target rate at only 1.00 percent.
Continued at link