Why the Fed now finds itself on a collision course with the 2024 election

[libertybele]

Why the Fed now finds itself on a collision course with the 2024 election

ed Chair Jay Powell's political conundrum is getting more challenging with each new week of 2024.

The year began with markets all but certain that a rate-cutting campaign would begin in March. But those expectations have now fully flipped, after multiple surprises to the upside on inflation combined with signs of a still-resilient economy.

The latest signal came Friday when the Labor Department said its Producer Price Index — which tracks the prices businesses pay to manufacture products and services — exceeded forecasts from December to January.

The debate has now shifted to whether the Fed will begin lowering interest rates in June or push the issue later into the summer.

A later timeline won't necessarily change Powell's underlying mission of avoiding both a recession and a resurgence of inflation. But it does put the Fed chair on a direct collision course with the 2024 political season.

Atlanta Fed President Raphael Bostic said Thursday he doesn't expect a cut until the third quarter, a period that includes both major political conventions and ends roughly five weeks before Election Day. On Friday, during an interview with CNBC, he was a little more specific: "Summer time," he said...............

https://finance.yahoo.com/news/why-the-fed-now-finds-itself-on-a-collision-course-with-the-2024-election-124357889.html?.tsrc=fp_deeplink

[catfish1957]

Powell, (or his position) has more impact and bearing on the United States economy than anyone else on earth.   So I make it a point to listen to pretty much everything the Fed Chair says.  I won't go as far to say JP is a biden toadie, but his words and actions pretty much indicate he isn't going to do any favors for Trump.

[Bigun]

Powell, (or his position) has more impact and bearing on the United States economy than anyone else on earth.   So I make it a point to listen to pretty much everything the Fed Chair says.  I won't go as far to say JP is a biden toadie, but his words and actions pretty much indicate he isn't going to do any favors for Trump.

You know for sure that he is a certified member of the swamp because he would never have been confirmed by the senate otherwise.

[Hoodat]

The debate has now shifted to whether the Fed will begin lowering interest rates in June or push the issue later into the summer.

The debate needs to shift to why the Fed chose to inflate the currency in the first place.  Stop printing new money, and inflation goes away.  It really is that simple.

But no one is talking about that.  Instead, they want to talk about how high they should drive up unemployment to relax demand.  They screwed up, bigtime.  And their solution is to make us suffer.  Bastards!  Every last one of them.

[catfish1957]

The debate needs to shift to why the Fed chose to inflate the currency in the first place.  Stop printing new money, and inflation goes away.  It really is that simple.

But no one is talking about that.  Instead, they want to talk about how high they should drive up unemployment to relax demand.  They screwed up, bigtime.  And their solution is to make us suffer.  Bastards!  Every last one of them.

Fiscal restraint as a governmental philosophy is long dead.  It's now just how long until the can disintegrates after being kicked down the road a 1000 times.

[Hoodat]

Powell, (or his position) has more impact and bearing on the United States economy than anyone else on earth.   So I make it a point to listen to pretty much everything the Fed Chair says.  I won't go as far to say JP is a biden toadie, but his words and actions pretty much indicate he isn't going to do any favors for Trump.

You realize that Trump is the one who hired him, right?  Trump wanted loose monetary policy to make his numbers look good, and Powell was his man.  Powell did exactly what Trump wanted him to do.  How else would President Trump be able to rustle up $3 trillion in spending money that he didn't have without raising interest rates?

But now the chickens have come home to roost.  And someone is going to have to pay the price.  Someone is going to have to suffer.  And it damn sure ain't gonna be the government.  There won't be any ramen noodles served in the households of any government bureaucrats.  In fact, they keep hiring even more.  So keep that in mind when you look at that $200 grocery bill that will get your family through half the week.  Your government did this to you, with lots of help from the Fed.   And now the Fed is punishing you for the effect of their actions.  Jeffrey Skilling and Andrew Fastow have nothing on these bastards.

[roamer_1]

The debate needs to shift to why the Fed chose to inflate the currency in the first place.  Stop printing new money, and inflation goes away.  It really is that simple.

Well, sorta... That does not count the trillions already in distribution.
That is going to level out, one way or another... Either in slowing down the economy (interest higher than inflation) so that the money disappears from profits at the top, or the bottom will fall out, and all that money will disappear out the bottom, in catastrophic failure...

One or the other.

[Bigun]

Fiscal restraint as a governmental philosophy is long dead.  It's now just how long until the can disintegrates after being kicked down the road a 1000 times.

Why is it long dead? What do you think it was that killed it? Honest questions. @catfish1957 @Hoodat 

[Free Vulcan]

Well, sorta... That does not count the trillions already in distribution.
That is going to level out, one way or another... Either in slowing down the economy (interest higher than inflation) so that the money disappears from profits at the top, or the bottom will fall out, and all that money will disappear out the bottom, in catastrophic failure...

One or the other.

Exactly. It's a double whammy right now - fiscally we're running huge deficits, at the same time we're printing money like crazy.

I'm amazed things have held up as much as they have.

[roamer_1]

Exactly. It's a double whammy right now - fiscally we're running huge deficits, at the same time we're printing money like crazy.

I'm amazed things have held up as much as they have.

technically, a third way... Knock out the chocks and let the economy roar all the way to life... And try to buy our way out of it - That's basically what Reaganomics turned into. But there's a diminishing return on that behavior... When Reagan did it, twenty years of prosperity... But nobody paid it back in the end... They doubled down. And now Tumpy does it - The same dang thing - and gets two years.

Sooner or later, the piper will be paid. Sunday morning always comes. And the longer you stretch it, the bigger the party - I get that - But still comes the bill at the end. Now they all know that's coming... What they're doing now is a game of musical chairs so they ain't the ones holding the bag...

Which means of course, that they will keep jackin on it till the bottom falls out, and folks like you and me get to pay the bill. Watch and see.

[catfish1957]

You realize that Trump is the one who hired him, right?  Trump wanted loose monetary policy to make his numbers look good, and Powell was his man.  Powell did exactly what Trump wanted him to do.  How else would President Trump be able to rustle up $3 trillion in spending money that he didn't have without raising interest rates?

But now the chickens have come home to roost.  And someone is going to have to pay the price.  Someone is going to have to suffer.  And it damn sure ain't gonna be the government.  There won't be any ramen noodles served in the households of any government bureaucrats.  In fact, they keep hiring even more.  So keep that in mind when you look at that $200 grocery bill that will get your family through half the week.  Your government did this to you, with lots of help from the Fed.   And now the Fed is punishing you for the effect of their actions.  Jeffrey Skilling and Andrew Fastow have nothing on these bastards.

Trump hired Pence too.  How'd that work out?

And other fin. issues?  Naw...  I'm totaly illiterate.   

[DB]

Why is it long dead? What do you think it was that killed it? Honest questions. @catfish1957 @Hoodat 

We all know why. The people in government seek favor and power. In short, free shit while I'm in office to buy favor. Let the next guy deal with the consequences... Now we're way down the consequences rabbit hole... The free shit voter is way past critical mass.

[Bigun]

We all know why. The people in government seek favor and power. In short, free shit while I'm in office to buy favor. Let the next guy deal with the consequences... Now we're way down the consequences rabbit hole... The free shit voter is way past critical mass.

My answer is much shorter, only four characters in fact.  1913.

[Fishrrman]

Vulcan observes:
"I'm amazed things have held up as much as they have."

Stop and consider this, Vulcan:
How much did the Bolsheviks start out with in 1918?
Essentially, not much.
And how long did it take until they finally went broke? How many decades?

America (regardless of what the government has) still is a vast reservoir of wealth. Regardless of what the federals borrow, it will probably take a long LONG time before DC comes to the position Moscow was in in 1991...even if they have to confiscate much of that privately-held wealth...

[DB]

My answer is much shorter, only four characters in fact.  1913.

1913 was an affect. Not the cause. Politicians seeking favor and power created it.

[Hoodat]

My answer is much shorter, only four characters in fact.  1913.

The government doesn't need income taxes as long as the Fed continues printing up more money.