Powell admits Fed got it wrong on inflation, says they should stop calling it 'transitory'

https://www.foxbusiness.com/politics/powell-fed-wrong-inflation-not-transitory

HYPERLINK has full article

snip

Federal Reserve Chairman Jerome Powell acknowledged Tuesday that he now expects high inflation to continue into the middle of 2022, stating that the government should no longer push what had been a recurring slogan of it being "transitory."..............

Powell admitted that the Fed was wrong in its prediction of how long the current high inflation will last, and that they now believe it will continue well into 2022.

end snip


What I wonder is why DC just doesn't come out and say it. Look folks, you voted for Democrats, what did you expect?

Democrat votes have consequences and this is an example.

 

prices are higher due to a supply issue with distribution and spending habit changes related to covid, once that is resolved they should go back down

now greedy corps may never lower prices back down, at that point it will be inflation - it really depends if people keep buying at higher prices

 

You don't understand, rightists only blame the POTUS for high prices when they aren't in charge. It's what they do.

 

You are really falling for this CYA White House spin? It is because the Biden administration have been dumping dollars into the economy and THAT is fueling inflation. The claim before that it was transitory was for the very reasons you just stated. No it is not transitory and will get worse as the Biden administration dumps more dollars into the economy.

 

have fun trying to sell that Democrat BS to the common folk.

Your Democrat vote helped bring this upon the folks

 

Trump spent more in 4 years then any President did in 4 years ever

 

it's the truth, but some will believe the rights lies I am sure

some are still waiting for JFK to rise from the dead and think Trump will be reinstated as President

 

And he has finally acknowledged what shoppers have known for some time and that inflation has spread throughout many products. For a Federal Chairman to come out and say this it must be serious because Federal Chairman know their words can make a difference good or bad. Now is he going to raise the prime interest rate?

 

The truth is that President Brandon will be a one term President. And he didn't even need to be investigated!

 

It's a global issue or do you think Biden will just snap his fingers and America's manufacturing industry will just reappear thanks to the Infrastructure bill?

 

it is a global issue, were not the only ones effected by supply issues due to the change of spending habits caused by the covid pandemic

I do not think Biden or Trump could fix it, it is what it is

when covid dies down, supply issues will resolve themselves

the Infrastructure bill will create good jobs and improve our Infrastructure - those are important issues too

 

I hope so, I hope neither the elderly Trump or the elderly Biden is President in 2024

 

But unfortunately for Democrats it is a Democrat president who is left holding the bag so to speak. The blame will fall on Biden. Just like the housing bubble was blamed on GW Bush when the bubble started during his father's presidency. Such is the nature of politics. You better hope things work out and the bottleneck gets fixed before the next presidential election. You can forget about the mid-terms, Democrats will be blamed for high inflation if Powell is correct in his assessment which he probably is.

 

That is certainly what we all hope.

 

Bush caused the housing bubble via lack of regulations, bush did not want the regulations....

https://www.nytimes.com/2008/12/21/business/worldbusiness/21iht-admin.4.18853088.html

"From his earliest days in office, Bush paired his belief that Americans do best when they own their own homes with his conviction that markets do best when left alone. Bush pushed hard to expand home ownership, especially among minority groups, an initiative that dovetailed with both his ambition to expand Republican appeal and the business interests of some of his biggest donors. But his housing policies and hands-off approach to regulation encouraged lax lending standards."

"Bush Ties Policy to Record Home Ownership" March 26, 2004

https://www.foxnews.com/story/bush-ties-policy-to-record-home-ownership

"Late last year, Bush signed the American Dream Down Payment Act (search) to help families that can afford monthly mortgage payments but not the down payment or closing costs associated with buying a house. The legislation authorizes $200 million a year in down payment assistance to at least 40,000 low-income families."

 

Inflation has been @sec 's pet gripe since 1/6/2021.

Ok, so demand exceeds supply since Dirty Donnie trashed our economy because he ignored the pandemic. Nobody bought anything for a year.
Get over it. Profiteers will rape the public until supply meets demand. Meanwhile, you're doing your best to blame Biden because you're sore Trump lost.

We get it.

 

Inflation is a lagging economic indicator, not a leading one. That means it reports on economic policies of the past, not those of the future. Guess who was president in the past, and in four years spent more money than any president before him.

Here is what I posted before on the topic:

"Here are the deficit numbers:
Trump:
-Tax cuts: $1.5 trillion over 10 years (predicted, probably will be much higher due to covid recession)
-Cares act: $2.2 trillion

Biden:
-America rescue plan: $1.9 trillion

So, it seems to be common "knowledge" in Trump supporter circles that Biden is causing inflation by printing money. Now, the question is: Why does Biden's money printing cause inflation, but Trump's does not, even though Trump's stimulus exceeded Biden's in total amount and duration?

I am not saying that the covid stimulus bills didn't contribute to inflation, they probably did. I, personally, got stimulus checks for my family which I didn't need. Some of that money was spent back into the economy, therefore raising prices at a time when the supply of goods plummeted due to supply chain issues.

So, maybe Trump supporters can clarify this:
1) Do Biden and Trump share the blame for inflation?
2) What was the effect of the tax cuts on the national credit card on inflation? Didn't they raise inflation because there was more money around chasing the same amount of goods?
3) Do policies have immediate effects on inflation, or are the effects delayed?
4) Would we have no inflation if Trump was still in office? If so, how would he prevented inflation?

I am interested to get some discussion on these macroeconomic issues, rather than the typical (to paraphrase) "Biden is the devil because he makes the stuff I buy more expensive" type of kneejerk analysis"

 

Really ? Seriously ?

Biden admin has put less that $1.5 Trillion in. Trump Put over $6 Trillion in...........but hey.....Its all Brandons fault right ?

Lest we forget that the current inflation is sparked by DEMAND. Americans have money and are spending it. They are spending it because we have more people vaccinated, and they are able to go out now, and they are spending money (DEMAND). Wait.....I thought that was good when Trump was president ?

 

I could care less about Trump. What I care about are harmful Democrat policies for which you voted. I will never understand why Democrat voters want to hurt the common folk?

 

Time magazine who was to blame for the housing market crash. Time selected several people who were to blame starting with Bill Clinton.

http://content.time.com/time/specials/packages/article/0,28804,1877351_1877350_1877322,00.html

Bill Clinton also signed the Commodity Futures Modernization Act, which exempted credit-default swaps from regulation. In 1995 Clinton loosened housing rules by rewriting the Community Reinvestment Act, which put added pressure on banks to lend in low-income neighborhoods.

 

So let's get back to Biden and increasing inflation.

 

What harmful Democrat policies ?
And since you didn't complain about harmful Republican policies, I take you concern as total BS.

I will never understand why Republican voters want to hurt the common folk. Actually, I do understand: they're just selfish and hateful.

 

do you pay more today for a gallon of gas than in October 2020?

Do you pay more today for milk than in October 2020 ?

Do you pay more for ground beef today than in October 2020?

That is what it is all about. Hurting the regular folk is always the Democrat way. Why do you vote Democrat ?

 

Fake News. You claim that Trump's spending level was 900% of Bidens. That is false.

Government spending in The Orange Miracle's final year was $9,139.8143B
Dementia Joe is tracking for $9,659.2293B in his first year, 106% of the Trumpian rate.

Clearly an unusually large brain has advantages over a shrunken one.

U.S. Bureau of Economic Analysis, Government total expenditures [W068RCQ027SBEA], retrieved from FRED, Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/W068RCQ027SBEA, November 30, 2021.

Demand's fine as long as it's balanced by supply. The Orange Genius had provided the correct amount of stimulus that floated us over the COVID hump and it was time for folks to return to work. But Dementia Joe, in his creepy whisper voice, admitted that Dems were funding a strike against hard hit COVID staggered businesses because creepy Joe, whose only talent is lying, spinning and selling his office for bribes, claimed that the Dems taxpayer funded strike against American businesses trying to emerge from COVID lockdowns would result in higher real wages. Well, Dementia Boy was wrong as usual and real wages have done something they never did under Trump, they have fallen under Biden.

More Fake News:

Black Friday Disappoints, Cyber Monday Sales Fall For The First Time Ever

"This year’s tally marks the first time that Adobe has tracked a slowdown in spending on major shopping days."

The slow motion seemingly endless disaster that is the Biden Presidency continues.

Blighted Biden's Bad News Persists​

It was good. Trump was clearly the superior president.

 

Yes really seriously, Biden is the one who continued the payments when they were not needed and I was against the Trump infusions too but at least he had the fact the economy was being shutdown to justify it. Demand paid for with dollars created through work and adding value to the economy does not inflate the money supply causing inflation, it is when those dollars are not base on worth and are flooded in my the government. Why do Americans have all that money, because it is being printed and handed out to them by the government instead of creating them through their labor. And Biden is pressing for another $4-$5 Trillion.