It is the weekend of the eagerly anticipated Jackson Hole monetary policy conference. You can see the agenda, the papers and notes on the discussion here. Since the conference became a focal point of global monetary policy discussion, in 1982, it has not met under conditions as complex as they are today.
The thing to keep in mind is that Jay Powell was trained as a lawyer, and raised as a banker. The Fed--much like the medical profession--seeks legitimacy from science. But central banking is not economics, especially when embedded in a democratic polity. Expect the usual dose of miracle, mystery, and authority. This is not to blame the Fed--they're smart people who are trying to do their best solving problems that nobody really understands with a very limited set of intellectual and policy tools. I only worry about them when they start to believe their own bullshit.
The Fed cannot address inflation without the cooperation of the legislature and the White House. It is like a fire department spraying water on a fire as it is being fed by ever greater volumes of gasoline. (I know, you do not use water on a gasoline fire).
Appreciate Chartbook very much. What kind of added monetary costs are you taking on to produce it? Or is it a question of incentives and opportunity costs?
The Fed still does not manage to have the sort of resilient policy regime that the Reserve Bank of Australia developed under Bernie Fraser in 1993 and which has allowed the RBA to outperform the Fed. But, hey, south of the equator, so doesn’t count.
Thank you Adam! For those of us who did not make the cut for the Jackson Hole confab this year, you have given us some great insights. What a difference a year makes in the age of uncertainty.
I read somewhere that the first mini nuclear installation in the United States is slated for Jackson Wyoming. Trying to confirm that. It won't be operational for another 6 years or so but it might hint at what the powers that be see coming
"Pantomime political economy": Pantomime has become common currency; not only of social media and the arts, but of politics and policy, both foreign and domestic. I think we are increasingly drawn to entertainment as the collapse of human agency becomes more likely.
Jerome Powell is just one of hundreds in this adminstration's plan to break the backs of working people around the world, and re-enslave the poor, likewise. What a scumbag.
This inflation is Anthony Fauci's inflation. It is temporary should anyone work together to fix supply chain.
This isn't an overheated world economy because times were good, quite the contrary. The economies were in recovery, so Powell is a crooked bastard acting all innocent with a blatant disregard for the truth.
Just as Tedros followed Fauci. Central banks are in the Powell playbook.
Biden created a war to solidify inflation and weaponize a strong dollar. If you don;t know how a strong dollar kills, harms, and starves people... research it.
Sanctions are doing the rest and the rest of the world HATES America for it and are aligning with Putin.
Lastly this administration wants to see layoffs at a time when we can't find skilled workers, such as pilots. It wants to freeze credit. It is spending and spending some more to create stagflation.
Joe Biden should be prosecuted for creating food insecurity, energy insecurity and being the accomplis to an attack on a nuclear facility. That would mean much to the rest of the world and to me.
The thing to keep in mind is that Jay Powell was trained as a lawyer, and raised as a banker. The Fed--much like the medical profession--seeks legitimacy from science. But central banking is not economics, especially when embedded in a democratic polity. Expect the usual dose of miracle, mystery, and authority. This is not to blame the Fed--they're smart people who are trying to do their best solving problems that nobody really understands with a very limited set of intellectual and policy tools. I only worry about them when they start to believe their own bullshit.
Thank you for this summary and broader context! I had wondered why it was that they converged on Jackson Hole of all places, and who else attended.
The Fed cannot address inflation without the cooperation of the legislature and the White House. It is like a fire department spraying water on a fire as it is being fed by ever greater volumes of gasoline. (I know, you do not use water on a gasoline fire).
An effective way to quell inflation would be to seriously raise taxation on profit-taking by the upper echelons.
Appreciate Chartbook very much. What kind of added monetary costs are you taking on to produce it? Or is it a question of incentives and opportunity costs?
The Fed still does not manage to have the sort of resilient policy regime that the Reserve Bank of Australia developed under Bernie Fraser in 1993 and which has allowed the RBA to outperform the Fed. But, hey, south of the equator, so doesn’t count.
https://www.rba.gov.au/monetary-policy/about.html
Thank you Adam! For those of us who did not make the cut for the Jackson Hole confab this year, you have given us some great insights. What a difference a year makes in the age of uncertainty.
I read somewhere that the first mini nuclear installation in the United States is slated for Jackson Wyoming. Trying to confirm that. It won't be operational for another 6 years or so but it might hint at what the powers that be see coming
"Pantomime political economy": Pantomime has become common currency; not only of social media and the arts, but of politics and policy, both foreign and domestic. I think we are increasingly drawn to entertainment as the collapse of human agency becomes more likely.
Jerome Powell is just one of hundreds in this adminstration's plan to break the backs of working people around the world, and re-enslave the poor, likewise. What a scumbag.
This inflation is Anthony Fauci's inflation. It is temporary should anyone work together to fix supply chain.
This isn't an overheated world economy because times were good, quite the contrary. The economies were in recovery, so Powell is a crooked bastard acting all innocent with a blatant disregard for the truth.
Just as Tedros followed Fauci. Central banks are in the Powell playbook.
Biden created a war to solidify inflation and weaponize a strong dollar. If you don;t know how a strong dollar kills, harms, and starves people... research it.
Sanctions are doing the rest and the rest of the world HATES America for it and are aligning with Putin.
Lastly this administration wants to see layoffs at a time when we can't find skilled workers, such as pilots. It wants to freeze credit. It is spending and spending some more to create stagflation.
Joe Biden should be prosecuted for creating food insecurity, energy insecurity and being the accomplis to an attack on a nuclear facility. That would mean much to the rest of the world and to me.