(Clint Siegner) Fed officials talk a good game.
Related Plunging Bond Market Signals Trouble Ahead
by Clint Siegner, May 23rd, 2022
Esther George shared the Fed’s current stance with a CNBC reporter last week:
“Looking at the stock market is an important price signal – as many others are – to watch and see. This is a time of uncertainty. It’s been a rough week in the equity markets. What we are looking for is the transmission of our policy through markets’ understanding, and that tightening should be expected. It is one of the avenues through which tighter financial conditions will emerge.”
Translate George’s Fedspeak to plain English, and it appears the central planners are willing to accept lower asset prices in order to control inflation.
The CNBC reporter and the rest of the corporate press seem happy to accept whatever George and the other wizards at the Fed say without question. More critical thinkers have questions.
Are George and other Fed officials lying about wanting to control price inflation?
Rising prices are a massive problem for most Americans. Politicians are feeling plenty of heat over the issue.
No doubt Biden administration officials are urging the Fed to assure Americans their central bank is taking decisive action. So far, however, there isn’t much reason to believe George and her comrades are planning to do much more than talk.
April’s half percent rate hike in the Fed funds rate has been played up as bold because it was double the usual increment. Yet the country is now experiencing 1980 levels of inflation, and thus far Fed officials have only jacked up the funds rate to 1.0%. The response four decades ago was to hike the funds rate to 20%.
Absolutely no one at the Fed (or anywhere else) is even talking about that kind of action. That is probably because our debt- and stimulus-addicted economy would likely implode before officials even got to 5%.
Only if Jerome Powell and the FOMC were to emulate Fed Chair Paul Volcker can Americans know for sure they are serious about reining in the inflation they created.
Until then, it is safer to assume official talk cannot be trusted. After all, these people hardly have Volcker’s courage or credibility.
Stillness in the Storm Editor: Why did we post this?
The news is important to all people because it is where we come to know new things about the world, which leads to the development of more life goals that lead to life wisdom. The news also serves as a social connection tool, as we tend to relate to those who know about and believe the things we do. With the power of an open truth-seeking mind in hand, the individual can grow wise and the collective can prosper.
– Justin
Not sure how to make sense of this? Want to learn how to discern like a pro? Read this essential guide to discernment, analysis of claims, and understanding the truth in a world of deception: 4 Key Steps of Discernment – Advanced Truth-Seeking Tools.
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Source:
https://www.activistpost.com/2022/05/feds-inflation-fight-is-all-bark-no-bite.html
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