Fuck Jerome Powell

[gab13by13]

I am not an economist but I had Econ 101. How many million Americans does Powell have to put out of work to stop raising interest rates?

Oh, I see Elizabeth Warren agrees with me.

Whatever happened to the invisible hand of the market?

I mean, looking at my spending habits, I never looked at the price of food when I went shopping, I don't want bargains on my food or my health care. I still buy organic but now I cut back on items that are ridiculously expensive. I imagine there are millions more people like me, Powell can leave it up to me and millions of my friends to help with the supply side. I refuse to buy a container of cut up watermelon for $22.00. It wasn't that long ago that I bought a big watermelon from the Amish for 5 bucks.

Rant off.

[Frasier Balzov]

1. If the CPI declined to 2%

I'm pretty sure Powell wouldn't mind if nobody lost their job.

[gab13by13]

2. Jerome Powell's own words,

"I want to cool off the economy and see a rise in the unemployment rate."

Translation; I am not stopping raising interest rates until we are in a recession.

[Fiendish Thingy]

14. Your translation is biased with your own fear and misplaced outrage, not facts.

BTW, got a link for that quote that lacks any context?

[Frasier Balzov]

27. Those do sound like unequivocal words.

His training must have shown him that you can't have one without the other.

[RobertMcNamara]

3. Wrong person

Trump set us up for this with his reckless tax plan, and the March 2020 cares act.

Powell is doing to right thing, and ugly, but it’s better than the alternate ugly.

You are mad at the wrong person.

[uponit7771]

34. +1, 40% of all USD in circulation was created under TFG the rants from reps should've been louder

... then

[MichMan]

41. Kind of hard for the House to complain when they were the ones who passed it.

Maybe that's why you don't hear much about the reckless covid spending

[brooklynite]

4. The White House: "President Biden Nominates Jerome Powell to Serve as Chair of the Federal Reserve"

Today, President Biden announced his intent to nominate Jerome Powell for a second term as Chair of the Board of Governors of the Federal Reserve System and to nominate Dr. Lael Brainard to serve as Vice Chair of the Board of Governors of the Federal Reserve System.

While our country still faces challenges as we emerge from the pandemic, we have made enormous progress in bringing our economy back to life and getting Americans back to work. Since the President took office, the economy has created over 5.6 million jobs, unemployment has fallen to 4.6% – two years faster than projected – and the pace of our economy’s growth outstrips the rest of the developed world.

That outcome is a testament to the success of the President’s economic agenda, and it is a testament to decisive action by Chair Powell and the Federal Reserve to cushion the impact of the pandemic and get America’s economy back on track. Chair Powell has provided steady leadership during an unprecedently challenging period, including the biggest economic downturn in modern history and attacks on the independence of the Federal Reserve.

During that time, Lael Brainard – one of our country’s leading macroeconomists – has played a key leadership role at the Federal Reserve, working with Powell to help power our country’s robust economic recovery.

Powell and Brainard share the Administration’s focus on ensuring that economic growth broadly benefits all workers. That’s why they oversaw a landmark re-evaluation of the Federal Reserve’s objectives to refocus its mission on the needs of workers of all backgrounds. And they’ve advanced key priorities that the President shares, like addressing the financial risks posed by climate change, and staying ahead of emerging risks to our financial system.

America needs steady, independent, and effective leadership at the Federal Reserve so it can advance its dual goals of keeping inflation low and prices stable, as well as creating a strong labor market that broadly benefits workers with better jobs and higher wages. President Biden has full confidence in Powell and Brainard’s experience, judgment, and integrity to continue delivering on those mandates and to help build our economy back better for working families.

President Biden still has three vacant seats on the Federal Reserve Board of Governors to fill, including the important position of Vice Chair for Supervision. The President intends to make those appointments beginning in early December, and is committed to improving the diversity in the Board’s composition.

https://www.whitehouse.gov/briefing-room/statements-releases/2021/11/22/president-biden-nominates-jerome-powell-to-serve-as-chair-of-the-federal-reserve-dr-lael-brainard-to-serve-as-vice-chair/

I'll go with his judgement.

[edhopper]

5. Does Yellen agree?

Last edited Thu Dec 15, 2022, 11:23 AM - Edit history (1)

I would go with her opinion.

[mathematic]

6. Warren is wrong and grinding an axe because she voted against confirming Powell

Warren was telling Powell he was wrong in June when he raised to the oh-so-horrifying level of 1.5%, predicting the rate hike would put millions of americans out of work. A talking point you repeat here.

MEANWHILE, inflation since June is back in the target range, millions more, not less, have jobs, unemployment is near 50 year lows, and inflation adjusted earnings are increasing.

Frankly, what the hell are you even complaining about?

[Bear Creek]

12. Warren is right

What the fed is doing is going to spiral into a depression. Because this whole situation is more depression than inflation. They say that they can’t get workers but they are not really hiring. A alot of the job count is a company who can’t fill the job because the people quit. They count each time they fill that one job. So as more people can’t work supposedly would mean a reduction in other companies which creates more unemployment. It looks like inflation because they are rising prices actually price gouging. In reality the companies don’t care. They are getting their money from the government and not by products and services. And there needs to be a relief for the people and not the companies. Best thing would be for Biden to get rid of his bill that Bush jr signed (Bill Clinton had sense not to sign it when he was president). That bill created usury and people lost their homes.

[TomCADem]

17. I am surprised that Warren is just relying on the market...

…to solve inflation. While Warren is railing against Powell, what is she proposing as an alternative? Richard Nixon style price controls? How did that work out?

Finally, interest rates are still pretty low. I bought house with an 9 percent mortgage in the 1990s, which at the time was a good deal, but now folks they have a god given right to 3 percent mortgages.

Also, I would love to put some money in a CD that returns more than 1 percent.

[DemocraticPatriot]

33. There is not going to be any "depression"---

Inflationary pressure is higher right now, than deflationary...

At the end of 2008-09, all the pressure WAS 'deflationary'--
which is why the Obama stimulus response amount was way too low,
and growth was very slow then...


The unemployment rate now is so low (which none of the pundits mention),
there is not going to be anything close to "a depression"--


unless you happen to be the one who loses their job, of course-- but those numbers are going to be incredibly small.

We have record employment now, THANKS To PRESIDENT JOE BIDEN!!!

[DemocraticPatriot]

32. Eggs are very expensive now....

Luckily, I don't eat that many of them...


If I did, I would buy some chickens
(I have some experience keeping animals, maybe more than most city-dwellers...)

[RobertMcNamara]

7. Before Covid ever happen Trumps tax plan would eventually lead to inflation

The Tax Cut and Jobs Act of 2017 eventually was going to cause high inflation. According to the National Bureau of Economic Research, the long-term impact of the act was an increase in the Consumer Price Index (CPI) by 0.7 percentage points, which is a significant amount for an economy like the United States (1). Secondly, the act increased the federal budget deficit, which means that the government had to borrow more money to keep its economy running (2). This extra borrowing leads to more money circulating throughout the economy, which, in turn, leads to higher levels of inflation. Additionally, the tax cuts caused a decrease in taxes that businesses and individuals had to pay, leading to a higher spending capacity and more demand for products (3). This increased demand drives up prices and leads to higher inflation. Once the chain reaction started, it was always going to spiral out of control more.

1. "The Macroeconomic Effects of the 2017 Tax Reform," National Bureau of Economic Research, https://www.nber.org/papers/w26755.

2. "The Impact of the Tax Cuts and Jobs Act on the Federal Budget," Congressional Budget Office, https://www.cbo.gov/publication/53581.

3. "Tax Cuts and Jobs Act: Exploring Impacts on Inflation," Investopedia, https://www.investopedia.com/articles/investing/031218/tax-cuts-jobs-act-exploring-impacts-inflation.asp.

[uponit7771]

35. THIS !!!! ☝🏾☝🏾☝🏾

[newdayneeded]

8. I agree with the OP

I think Powell and all economists are following rules from the 50s and 60s. just let the economy keep growing. the market will price correct when people stop buying overpriced stuff. case in point, gas. people stopped buying it at 5 per gallon and boom, prices come down.

This just feels like sabatoging the whole economy and now bringing on a recession to fuck everything up. millions laid off, people struggling to live on unemployment. Powell is absolutely gonna make this a reality in mere months.

[TomCADem]

15. Of course, if you ignore inflation, then the working class is hurt...

…as their purchasing power is eroded.

[newdayneeded]

19. Working people can afford 4 dollar

heads of lettuce. bringing on lay offs is not the way to go.

[uponit7771]

36. "Working people can afford 4 dollar" Do you have a source for this? thx in advance

[newdayneeded]

40. ??

You're asking if people who are working can afford $4 heads of lettuce as opposed to laid off people?

It seems obvious to me, people will take higher food prices over being laid off.

[uponit7771]

42. No, I was just asking who is affording 4$ heads of lettuce without caveat of giving up something ...

... else in the grocery bin.

Yeah, that vid where Porter shows corps being greedy hits hard with me.

I don't see crushing the working wagers to get corps to bring down their greed is a good thing

[newdayneeded]

43. we both agree then

Last edited Fri Dec 16, 2022, 05:23 PM - Edit history (1)

Corporations are artificially inflating prices. they got us over a barrel and they know it. I suppose a 2 month boycott with millions buying from Aldis and whatever is edible at dollar tree might make the greedy wake up, but I doubt it.

Happy Friday to you.

[uponit7771]

44. +1,

[sprinkleeninow]

16. As do I. (no text)

[inthewind21]

25. Ummmm

NO. People did not stop buying gas.

[uponit7771]

37. +1,

[onenote]

9. Scary that you think taking Econ 101 makes you an expert on economic policy.

[stopdiggin]

10. you continue to ignore the crippling burden

high (and even worse, sustained) inflation wreaks on the poor and working class. Tried to rent an apartment or house recently? So, you're going to re-balance things by not buying a pricey tray of sliced watermelon? The single mother is laughing so hard she's liable to puke.

[moonshinegnomie]

26. inflation is already coming down in a hurry

for the past 6 months inflation was running at 4.6%
for the last 3 month 3.6%

[former9thward]

28. The government seems to disagree with you.

The current inflation rate in November was 7.1%. Your figures are way off.

https://www.bls.gov/news.release/cpi.htm

[moonshinegnomie]

29. thats for the last 12 months

for the last six months it running at 4.6% and for the last 3 3.6%. (on an annual basis). in the 1st 6 months of teh year there were some big numbers that skewed the whole years data

cpi change per month
dec 2021 .6
jan 2022 .6
feb 2022 .8
march 2022 1.2
april 2022 .3
may 2022 1.0
june 2022 1.3
july 2022 0.0
august 2022 .1
september 2022 .4
october 2022 .4
november 2022 .1

[former9thward]

30. Not true at all.

I will go with the government numbers.

[moonshinegnomie]

31. my numbers are the governments numbers

directly from the BLS

[uponit7771]

38. That's the ***RATE*** of inflation, getting CPI back to 2020 before Trumps inflation would be great

[Dave says]

11. Record corporate profits and high inflation

Sounds like monopoly rents to me, not increasing wages and consumer-driven demand. Break up the giant corporations and tax them as they were taxed (at least) before Trump.

[Fiendish Thingy]

13. First of all, stop shopping at Whole Foods

That’s the only place a container of cut watermelon costs $22 ( unless it’s a huge bucket of melon, and after all, it is December, not July).

If you took Econ 101, then you’d understand why Powell has been raising rates, and why it’s working.

Your outrage should be focused on the corporations gouging consumers, and the congress that, because of Manchin and Sinema, lacks the votes to punish their profiteering.

Unemployment is at a 40 year low. Last month’s job numbers were good. Unless the GOP takes the economy over a cliff with the debt ceiling, it’s looking more and more like we will have a soft landing by mid-2023, with no recession, or just an extremely shallow and short one.

[PoindexterOglethorpe]

18. I seem to be the only person who recalls that in the 1970s we had

high inflation AND high interest rates.

I think the fed is totally wrong raising interest rates in a supposed attempt to curb inflation. Maybe they are all under 40, which would explain their not remembering history.

Oh, and while not quite the same thing, in the early 70s Richard Nixon imposed wage and price controls, also to curb inflation. Even at the time, economists said, This might work temporarily, but as soon as those controls are lifted, inflation will go back to what it would have been. And of course they were right.

I lost a wage increase, thank you Dick Nixon, at a time when each wage increase was crucial to my standard of living. Meanwhile, the cost of everything still increased, and so I was worse off. This was a time in my life when my wages just barely covered my expenses. And this is part of how I learned to live on almost nothing, and still do to this day.

As for things like watermelon, I don't buy if I don't think it's a reasonable cost. Once certain commodities go above a point I'm willing to pay, I just don't buy it. I find it reasonably easy to adjust what I eat to accommodate the prices.

[moonshinegnomie]

20. cpi over the last 6 month is running at a 4.6% annual rate

last 6 month changes in the cpi
1.3
0
.1
.4
.4
.1


the fed should stop raising rates and wait 6 months to see the effect of what they have done

https://tradingeconomics.com/united-states/inflation-rate-mom

[W_HAMILTON]

22. I agree.

[newdayneeded]

21. And Powell strikes again!

Raises rates, dow down 633.

[Jose Garcia]

23. Just for the record, Elizabeth Warren is also not an economist

[moonshinegnomie]

24. wall street is already convinced powell is going to go to far and will have to reverse course next y

predicted fed funds rates for next year (from the fed funds future contract)


feb 4.64%
june 4.89%
december 2023 4.48%

[wishstar]

39. I've noticed banks are not expecting interest to keep going up much more

On CD's, they're offering as much or more interest for short term CD's vs. longer term CD's.

Some banks are only paying up to 4% on 1 to 1 1/2 year CD's and keeping all of their longer term CD's at 1%.

This inversion is a sure sign that they expect slowdown in economy and end to rate hikes so they are less willing to offer customers higher long term rates.