We’ve been saying this for at least six months, but now Federal Reserve chairman Jerome Powell has put his tail between in legs and admitted at a Senate hearing yesterday that inflation isn’t “transitory.” With inflation now at 6% Powell acknowledged: “I think it’s probably a good time to retire that word and try to explain more clearly what we mean.”
Well, yes, Mr. Chairman what exactly do you mean and what are you doing to smother the inflation flames? Nothing that we can see. Fed interest rates are still near zero.
Worse. Why in the world is the Fed continuing to purchase tens of billions of dollars of mortgage-backed-securities, which only subsidizes a red hot housing market? Has your team of hot shot economists learned NOTHING from the catastrophic housing bubble the fed helped inflate in 2006-2008 and that crashed the economy?
Why isn’t the Fed taking a strong stance against the insane Biden spending spree that is feeding inflation? The best way for the Fed to bring inflation down is to help kill the $4 trillion Biden debt bill. Did Powell cut a closed-door deal with Biden that he wouldn’t attack his massive government expansionism paid for with debt, in exchange for being reappointed?