{"id":218161,"date":"2022-07-04T16:41:49","date_gmt":"2022-07-04T15:41:49","guid":{"rendered":"https:\/\/www.forexmentorpro.com\/blog\/?p=218161"},"modified":"2024-05-24T00:30:41","modified_gmt":"2024-05-23T23:30:41","slug":"trade-ideas-head-of-the-fed-doesnt-understand-inflation","status":"publish","type":"post","link":"https:\/\/www.forexmentorpro.com\/blog\/trade-ideas-head-of-the-fed-doesnt-understand-inflation\/","title":{"rendered":"Trade Ideas & Head of the Fed Doesn’t Understand Inflation!"},"content":{"rendered":"

An incredible statement by Jerome Powell last week. It appears that the Head of the Fed Doesn’t Understand Inflation!\u00a0 in October 2020<\/strong> I hosted a webinar where I explained the looming problem of inflation. How the money printing around the world, but especially the Federal Reserve’s actions would likely cause major problems. I have repeated the theme often since.<\/p>\n

In the fall of 2021 Powell and Yellen changed their tune that “inflation wouldn’t last,” but that it would drop by Christmas. Whoops, wrong yet again.<\/p>\n

Then in January of this year, I posted an article “Lions led by Donkeys” where I talked about the nonsense that the Fed, Powell especially, were continuing to spout about inflation.<\/p>\n

I said then:<\/p>\n

Most of the following is concerning the USA mainly because of yet more BS this week from Powell and Yellen. It could just as easily be referring to the UK, Europe or any other country.<\/p>\n

Also, it is not politically biased. I have no respect for any current financial leader nor those in the last 10 years. Yellen & Powell for example have served both Democrat & Republican masters.<\/p>\n

Both are highly educated and have been involved in high finance for many decades so they are not stupid, but they are masters of playing the game.<\/p>\n

Head of the Fed Doesn’t Understand Inflation!<\/h2>\n

Powells Inflation nonsense:<\/strong><\/p>\n

Last year Federal Reserve chair Powell said in late August that \u201cinflation is only transitory.\u201d and of real importance\u00a0\u201ctightening monetary policy could be a \u201cparticularly harmful\u201d mistake\u201d.*<\/strong><\/p>\n

By September he spoke about it \u201cperhaps lasting a little longer before dropping by the year\u2019s end.\u201d By November he dropped the word transitory in this exchange:<\/p>\n

\u201cHow long does inflation have to run above your target before the Fed decides, maybe it\u2019s not so transitory?\u201d Senate Banking Committee Ranking Member Pat Toomey (R-Pa.) asked Powell, who appeared alongside Treasury Secretary Janet Yellen.<\/p>\n

Powell explained that\u00a0while the word has \u201cdifferent meanings to different people,\u201d<\/strong><\/em>\u00a0the Federal Reserve \u201ctend to use it to mean that it won\u2019t leave a permanent mark in the form of higher inflation.<\/p>\n

\u201cI think it\u2019s \u2014 it\u2019s probably a good time to retire that word and try to explain more clearly what we mean,\u201d Powell added.<\/p>\n

Duh, so it wasn\u2019t that he was saying it wouldn\u2019t be transitory (he WAS) but it\u2019s because people didn\u2019t understand the word!<\/p>\n

You really think they can\u2019t keep making this stuff up!<\/p>\n

+++++++++++++++++++++++++++<\/p>\n

Last week he moved his comments to a whole new level of insanity that I find hard to believe.<\/strong><\/em> I actually thought that the video had been doctored, but no. Jerome Powell the head of the Federal Reserve, the reserve currency of the world, had this to say ”<\/p>\n

\u201cWe now understand better how little we understand about inflation,\u201d As the interviewer commented, “that’s not very reassuring”!<\/strong><\/em><\/p>\n

Powell went on to say that “This was unpredicted!!!<\/strong><\/em> What the…. x^%$_ I never heard such nonsense in my lifetime.<\/p>\n

I shared the following in my Twitter Feed: https:\/\/twitter.com\/marcwalton<\/a><\/p>\n

Here is your great leader..<\/p>\n

Head of the Fed Doesn’t Understand Inflation!<\/h3>\n