If the Fed were to follow today's 75 basis point increase in the Fed Funds Rate with 100 basis point increases during each of the July and September FOMC meetings, it still would not be sufficient to curb inflation this year. 2022 will be marked by a recession, elevated prices for goods and services, and … Continue reading Too Little Too Late. The Inflation Cake Is Baked.
Powell was confirmed for a second term as Fed Chair on May 12th. His nomination was held up for months in the Senate. Powell's confirmation will provide him with temporary courage - enough to talk in a hawkish manner, enough to take the Fed Funds Rate to 2% by summer's end - but not enough … Continue reading Jerome Powell Will Talk Tough This Summer
Powell's Fed will continue to run its ultra-loose monetary policy for as long as possible in an effort to inflate the debt away. On Wednesday Powell will say more time is needed for the economy to recover before the Fed considers tightening interest rates. Powell will talk of transitory inflation. Powell will quote May's poor … Continue reading The Fed Won’t Change Its Position On Wednesday