fed policy

“And So Rates Will Be Higher”- Jerome Powell

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Jerome Powell says “rates will be higher”. I believe him. I don’t think most others do. Investors, especially, need to pay attention.

FED POLICY

I have read the text of Powell’s interview. His comments are consistent with remarks he has made over the past two years during the Fed’s  current campaign to see interest rates returned to a higher, more historically normal level…

“I think instinctively – I can’t prove this, we’re going to learn about this empirically – but it seems to me that the neutral rate is probably higher than it was during the intra-crisis period. And so, rates will be higher.” 

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Arguing About Fed Policy Is A Waste of Time

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When government (or a President) claims that Federal Reserve policy is hurting the economy, they are either grandstanding, or are ignorant about the function and purpose of the Federal Reserve.

No one wants to see the economy suffer, anymore than they want to see a plague, or infectious disease, affect millions of people. And no President wants to be in office to preside over a recession or depression. But neither can they exercise any power or influence regarding the implementation of Fed policy; particularly when it comes to interest rates.

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