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228 sats \ 0 replies \ @harrr 5 Feb
Man, it's so obvious that those idiots have no idea what they are doing. Micro managing the money supply of a nation and lying about why "inflation is good". Trying to sell us a centrally planned economy.
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227 sats \ 1 reply \ @398ja 5 Feb
Key moments:
- Jerome Powell is the chair of the Federal Reserve and has overseen 11 interest rate hikes to cool inflation. While this raised concerns of a recession, inflation is now falling without a recession occurring.
- Powell believes inflation has come down significantly but the job of reducing it to the 2% target is not done yet. More evidence is needed that inflation is sustainably falling before rate cuts.
- The Fed aims to return inflation to its long-term 2% target to restore price stability for the public's benefit. Powell wants more confidence inflation will fall to 2% before cutting rates.
- Powell sees the current economy as strong with solid growth and a low 3.7% unemployment rate, allowing a careful approach to rate decisions.
- Inflation has fallen from over 9% to around 3% but Powell is not committed to getting it all the way to 2% before rate cuts, just wanting to see more good data.
- Powell acknowledges the Fed was too slow to recognize inflation in 2021 and should have tightened policy earlier to curb price increases.
- A rate cut is not likely at the next meeting in March but could occur by the May meeting if inflation data remains stable.
- Future rate cuts would likely be quarter or half point decreases to support the economy without rekindling inflation.
- Powell does not foresee a repeat of the 2008 banking crisis but some smaller regional banks may face challenges from commercial real estate declines.
- Powell expresses concern over the unsustainable rising national debt burden on future generations.
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21 sats \ 0 replies \ @KLT 5 Feb
Thanks for this summary, I can’t bring myself to watch this tom foolery.
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10 sats \ 0 replies \ @piecover 5 Feb
People being fed garbage
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31 sats \ 0 replies \ @freetx 5 Feb
I'm not defending Powell.
However, the actual answer is to raise interest rates. Volcker was able to tame interest rates and setup the boom of the 80s.....he had to raise rates to 20% (!) to do that.
I'm firmly convinced that most (not all) of the political grift and even societal wokeism is the result of artificially low interest rates. When you devalue money and time by setting 0-1% interest rates, it winds up causing all sorts of crazy societal distortions.
For one thing, companies no longer care about making actual profits (see Disney, et al) because they can borrow at 1% and plow into stock to pump price. A result of this is a bozo-explosion in hiring, in which companies hire unqualified & incompetent employees, who then further exasperate the companies ability to generate profit in its traditional business (and thus a further dependency on cheap money solutions).
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0 sats \ 0 replies \ @UCantDoThatDotRugged 5 Feb
Tonight on please watch: Up to 60 minutes of Jerome Powell talking
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0 sats \ 0 replies \ @OriginalSize 5 Feb
That sad and concerned look helps to sell ads. Another channel through which to monetize this shitshow.
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