Powell suggests Fed might lack ammo to combat next recession

[Yo_Mama_Been_Loggin]

Federal Reserve Chairman Jerome Powell came close to acknowledging that the central bank may not have the firepower to fight the next recession and called on Congress to get ready to help.

The current low level of interest rates “means that it would be important for fiscal policy to support the economy if it weakens,” he told the House Financial Services Committee on Tuesday.

The remark, which came in opening testimony that Powell is due to repeat to a Senate panel on Wednesday, was an unusual appeal by the head of a politically independent institution that is used to combating economic contractions on its own.

But it highlights the difficulties that the Fed and other major central banks face in a world of historically low interest rates and why tax cuts and government spending increases may also be needed to fight future downturns.

https://www.msn.com/en-us/money/markets/powell-suggests-fed-might-lack-ammo-to-combat-next-recession/ar-BBZUGRV?li=BBnbfcN&ocid=hplocalnews

Just like the repukes want it.

[Kurt V.]

1. Central banks wanted the role of galaxy brain. Now they have to own it.

[applegrove]

2. Right. Like Republicans didn't let Obama spend fiscally during the great

recession. Once they got back control in congress they shut obama down. Why doesn't he complain about Trump's deficit spending during expansion? Isn't that the real problem?

[SamKnause]

3. Duh.

[Squinch]

4. Gosh, ya think, Jerry? What an asshole.

[Iliyah]

5. WTF

[Wounded Bear]

6. Yeah, well they've been keeping interest rates low artificially...

so they can get cheap money. Now where do you go when you need to cut rates?

[Skittles]

7. NO SHIT

[magicarpet]

8. No, no, no,... that is not the Fascist Rethug way,...

During the good/fair economic times Rethugs eat all the seed corn, ie - give all the unneeded tax breaks to the wealth so they can hoard more money in off shore bank accounts.

Then when the economy experiences a down turn you scream austerity, austerity, gotta cut the fat and pork.

Then with enthusiasm and glee they run grab the machete and go after social security, medicare, medicaid, and food stamps. Most of which has nothing or little to do with deficits to the budget.

[Wellstone ruled]

9. Reality Check anyone!

Mean while,Powell has the Repo Window open and is taking any type of bond in lieu of cash. Any type of Bond=No Doc Mortgage,stressed subprime loans,stressed and regular subprime Auto Loan Loan bonds,Payday loan bonds.

[ooky]

10. Repeal the tax scam and put the money in the pockets of people who will spend it, invest

in renewable energy to combat climate change/add jobs/increase consumer spending, invest in infrastructure/add jobs/increase consumer spending.

[hatrack]

11. Uh, yeah, duh . . .