How is the Fed going to cut rates with inflation over 3%?

[Hektor]

16 hours ago, gfp said:

In case anybody hasn't read "Trillion Dollar Triage" and has an interest in the history of Fed independence from the White House, this article is basically a big excerpt from the first part of the book -

 

https://www.wsj.com/economy/central-banking/a-brief-history-of-the-feds-uneasy-peace-with-the-white-house-608dee30?mod=hp_lead_pos4

[james22]

 

[RedLion]

2 hours ago, james22 said:

 

Wow. 

[Paarslaars]

Must have had some kind of seizure... I hope.

[John Hjorth]

12 minutes ago, RedLion said:

Wow. 

 

Yeah, Wow, indeed,

 

Monday I'll make sure to get appointments, to get checked, that :

 

I'm not in need of new glasses for my hearing, & that

I'm not in need of new hearing aids for my vision.

 

Edited May 4 by John Hjorth

[james22]

Jared Bernstein (born December 26, 1955) is an American "economist" who is the chair of the United States Council of Economic Advisers. He is a senior fellow at the Center on Budget and Policy Priorities. From 2009 to 2011, Bernstein was the chief economist and economic adviser to Vice President Joe Biden in the Obama Administration. In 2008, Michael D. Shear described Bernstein as a progressive and "a strong advocate for workers".

 

In February 2023, President Joe Biden nominated Bernstein to serve as Chair of the Council of Economic Advisers despite not having a formal background in economics. He was confirmed to be chair on June 13, 2023. He was ceremonially sworn in by Vice President Kamala Harris on July 10, 2023.

 

 

Bernstein graduated with a bachelor's degree in music from the Manhattan School of Music where he studied double bass with Orin O'Brien. Throughout the Eighties Jared was a mainstay on the jazz scene in NYC.

 

He also earned a Master of Social Work from Hunter College as well as a DSW in social welfare from Columbia University's school of social work.

 

https://en.wikipedia.org/wiki/Jared_Bernstein

[mattee2264]

I think Yellen is the one pulling the strings pushing her agenda. And having worked on the other side she knows that the Fed will have to accommodate irresponsible fiscal policy which is why you are already seeing an accelerated taper and talk about cutting rates. 

 

One thing is clear, the US government is well aware that the voters still perceive inflation to be a major problem but refuse to accept any culpability for causing the inflation when it is Economics 101 that expansionary fiscal policy when the economy is at full employment is inflationary. 

 

Will be interesting to see how this plays out. 

[Cigarbutt]

On 5/5/2024 at 5:57 AM, mattee2264 said:

...expansionary fiscal policy when the economy is at full employment is inflationary. 

Will be interesting to see how this plays out. 

There was this person in the 50s (trying to understand WW2 money supply dynamics and the relative absence of runaway inflation that was felt to be secondary to price controls and others) who compared the combination of monetary and fiscal policy to the handling of a kite (with demand being the wind). There was this assumption that stabilizers (automatic and to be created) could always and effectively maintain some kind of wind,

Interesting, indeed (opinion).

[james22]

On 4/15/2024 at 8:25 AM, Eldad said:

It is clear to me a conservative not named Trump will be required to save our country.