Tag: Jay Powell

It Is Official. We Are In A Recession.

It Is Official. We Are In A Recession.

The Atlanta Fed's GDPNow Q2 Real GDP estimate was -2.1% as of July 1st. This marks the second consecutive negative Real GDP quarter which means we are officially in a recession. A recession in 2022 was an easy call for us to make as there was essentially zero probability of the U.S. economy growing in … Continue reading It Is Official. We Are In A Recession.

Will Powell Surprise To The Upside?

Will Powell Surprise To The Upside?

The Fed's FOMC meeting will take place this week on June 14th and 15th. Fed Chair Powell has lost control of the inflation narrative. The Fed needs to act boldly to capture control of the inflation narrative. Price inflation was obviously never going to be transitory given the Fed grew the money supply as measured … Continue reading Will Powell Surprise To The Upside?

Will He Or Won’t He?

Will He Or Won’t He?

Will Fed Chair Powell increase the Fed Funds Rate for three consecutive meetings? We say look to the credit markets. Consensus amongst investors seems to be that the Fed will execute two consecutive rate hikes but may pause before executing a third. Our view is that Fed Chair Powell will execute Fed Funds hikes at … Continue reading Will He Or Won’t He?

Jerome Powell Will Talk Tough This Summer

Jerome Powell Will Talk Tough This Summer

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 Acknowledges Inflation Could Persist Longer Than Anticipated

Powell Acknowledges Inflation Could Persist Longer Than Anticipated

Fed Chair Powell's statement to be made Tuesday at 10:00am ET to the Committee on Banking, Housing, and Urban Affairs acknowledges that inflation may not be as "transitory" as the Fed initially thought. Powell's statement to the committee is below. Powell knew this would be the case months ago but the Fed will never admit … Continue reading Powell Acknowledges Inflation Could Persist Longer Than Anticipated

The Second Domino Falls As Kaplan Steps Down From His Dallas Fed Post

The Second Domino Falls As Kaplan Steps Down From His Dallas Fed Post

Earlier today Boston Fed President Eric Rosengren announced his September 30th retirement. This afternoon Dallas Fed President Robert Kaplan announced he will step down effective October 8th. We first wrote about the Fed's poor governance earlier this month. Chair Jay Powell's resignation would be the icing on the cake but that news is not forthcoming. … Continue reading The Second Domino Falls As Kaplan Steps Down From His Dallas Fed Post

Boston Fed President Eric Rosengren Announces He Will Retire Sept. 30

Boston Fed President Eric Rosengren Announces He Will Retire Sept. 30

We recently wrote that it was outrageous for Fed officials to have traded equities as the Fed was doing deals with corporate issuers in 2020. One of the offenders - Boston Fed President Eric Rosengren - has been dealt with. The other direct offender was Dallas Fed President Robert Steven Kaplan. Frankly, Chairman Powell ought … Continue reading Boston Fed President Eric Rosengren Announces He Will Retire Sept. 30

A Fed Critique By Time Stamp

A Fed Critique By Time Stamp

We critique Fed Chairman Powell's recent FOMC YouTube clip comments (video below) by time stamp. 0:07 - The Fed continues to purchase Treasuries ($80 billion per month) and MBS ($40 billion per month), thereby artificially suppressing interest rates while inflating the money supply. The Fed's actions - increasing the money supply - are solely responsible … Continue reading A Fed Critique By Time Stamp

The Fed Will Not Taper In 2021. Inflation Is Not Transitory.

The Fed Will Not Taper In 2021. Inflation Is Not Transitory.

The Fed likely won't taper asset purchases this calendar year. It should, but it won't. **Purchase our Amazon Kindle book Stagflation Is Imminent: HERE We previously mentioned mid-term elections as one reason why the Fed won't take away the punch bowl. Second, the Labor Participation rate - a key economic indicator for the Fed - … Continue reading The Fed Will Not Taper In 2021. Inflation Is Not Transitory.

Square, PayPal, and Apple Will Dominate A Digital Currency World

Square, PayPal, and Apple Will Dominate A Digital Currency World

A digital currency world is coming. The 2022 Beijing Olympics will operate via a digital RMB for local attendees and may include digital cross-border payments as well. Our Federal Reserve is experimenting with digital currency. Both Fed Chair Powell and Treasury Secretary Yellen have talked down Bitcoin and said the U.S. will move slowly with … Continue reading Square, PayPal, and Apple Will Dominate A Digital Currency World