The Fed Built Their House Of Pain

July2022
  |     |   25 posts since 2018

So I see ol' Powell is no longer on the "transitory" theme. However, he is still moving like a three toed sloth...maybe 50 basis point today...Yet diesel prices are expected to surge, which transports 90% of the goods out there.... It seems Powells methods are like bullets bouncing off of the inflationary Superman.

Once again behind the curve it appears! They need a Volcker shock to the system to tame this...Powells metered responses are just extending the pain to everyone...lol he eventually will have a recession on his hands, one way of the other, so he might as well get the pain over with sooner than later.

However if the Fed wants to slowly telegraph every move while inflation burns over everything; then his silver lining to all of this will push up the Social Security COLA for 2023.

Powell suffers from the "slows" while Inflation is simply outstripping his next "pre-planned" move




me1004
  |     |   1,090 posts since 2010
The Fed has been asleep at the switch for years now, the economy has moved along not because of the Fed, but despite it. The Fed rate never should have been put at 0 or even remotely close to that. It is criminal that they have left it at that so long. Anygthing less thatn about 2% can only help for a shrot time to boost confidence jsut some. If business and peole are not borrowing at a 2% Fed rate, the reson is NOT the rate. Making it lower it will not get borrowing going.

The talk is Fed will raise the rate a half percent today, and probably same next month. Great, that will bring it to about 1.25% -- still way too low even without out-of-control inflation storming higher. The Fed shows it has no idea what it is doing and no understanding. When they went to a zero rate, their only understanding was to talk about maybe going to a negative rate!

Biden never should have reappointed Powell. And the entire establishment should be giving a lot more consideration to savers -- when you have the Fed rate very low, you cut off spending by all the savers who rely on their savings to provide income they can spend. That is, you take a load of buyers out of the system -- in order to increase buying. There are limits to how low and how long to go low, but the Fed has no concept of it, no understanding.
July2022
  |     |   25 posts since 2018
I totally agree, Biden should have never reappointed him. Anybody wearing a ball cap who has a mild understanding of what Volcker did and what Powell is doing could simply do a better job.
They wanted to push everyone into the market to support the economy, basically telling every American out there " Spend everything you've got, this economic Potemkin village needs support!"
Likewise, Biden might, might could have possibly might have saved the midterms for his crowd if he had kicked Powell to the curb and got someone in the Fed who demonstrated and aggressive stance but its status quo and not much as a peep out of the White House about the economy. Its like they know they are done for the midterms and might as well order caviar from the White House kitchen everyday until the 2 years as a lame duck comes to an end.
Now I do realize, Trump and Obama took us down the road to zero interest rates, so Im not just lashing out at Biden; theres enough blame in the Feds Monkey show to go around.
deplorable_1
  |     |   409 posts since 2020
Seriously you are putting Trump in the same league as Obama regarding interest rates? The only decent CD deals I had were from when Trump was in office. This slide into low/0% rates all began with the big "O" and this high inflation we have now also began there as well. Obama was ground zero for 0% interest rates.
GregoryG
  |     |   42 posts since 2022
The slide may have started with Obama, but it was because of the bush mess he was handed.
deplorable_1
  |     |   409 posts since 2020
Fair enough but rates were way better with Bush as well. Just pointing out when all this 0% stuff began.
bobert456
  |     |   12 posts since 2022
Is there some INFORMATION here, or has this become FINANCIAL FACEBOOK. If you want to vent, pls take it OFF this web site.
deplorable_1
  |     |   409 posts since 2020
He put in the miscellaneous section and it's very relevant and 100% correct I might add. If this were financial "Facebook" it would have got censored like every other opinion a particular uninformed segment of the population disagrees with.
July2022
  |     |   25 posts since 2018
Bobert456,
I picked the fourm section that would fit , hopefully without it being intrusive to others, however if you feel the need to read it, and lash out then I suggest you resist temptation
alan1
  |     |   684 posts since 2015
July 2022 -- Every week, Ken Tumin writes an article titled "Federal Reserve, the Economy and CD Rate Forecast" where readers may post comments about the subject of the article. There are dozens of comments on the most recent such article, which was dated May 3.
Your remarks could properly have been posted there.

Ken Tumin has repeatedly cautioned: " Please keep all discussion about the Fed, the economy and politics to my Fed/Economy review blog post."

To quote from your reply to Bobert456: "if you feel the need to lash out" against Powell "then I suggest you resist temptation" to create your own section on the Forum and, instead, add your wisdom to the dozens of comments on Ken Tumin's weekly Fed roundup. (Or to his follow-up article on the Fed Meeting, dated May 4.)
Ally6770
  |     |   3,103 posts since 2010
If any of us complainers could do better why are we just writing about it and complaining about it and not in the jobs that they seem to know all the answers.
This high inflation rate is what most people in our country said was worth it for a better economy, to get people back to work, and to help Ukraine. But now some have changed their minds. Russia has 16.7% inflation and there are countries that have even higher rates and the highest country had 69.97% inflation in March. How fast we change our mind when we have to pay more for things. Inflation was up 13.9% in the 1980's and mtg's 13%. Prime was 19% plus 2 for most business loans. At least most of the people on this site have money for CD's, or are learning from Ken's how to do make the most of what savings they do have and have enough money to eat and keep warm. There are many in Ukraine do not and are dying from starvation and have no water or even draining radiators for their children to have water. 25% of the people in the WORLD right now do not even have enough to eat.
Again Thank you KEN for helping all of us.!!!
weiss800
  |     |   22 posts since 2014
Bravo, Ally6770!!


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