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.
Wow, obviously you are under-educated. I won't even call you a liberal, because it's obvious here. But if you look at the actions in Ukraine since 2014 and Victoria Nuland answering directly to Joe Biden. If you at all understand how a strong dollar is used across the world and how nations are sick of being punished by it, I'd be amazed. If you can comprehend what happens when rates increase and how it isn;t a solution to supply side, heck, I might even consider you hopeful. But no, you go straight to duhhhhhhhh he mus' be a Trump liker or Russian, because after all, in your elitist mindset both are evil people well under your self-created stature now aren't we all who disagree with you? What comes next with you people? That's right, you will call all of us racists. What else Jack? Too lazy to read? Can't understand how the west possibly could use Covid to punish others? Think that an unwinnable war was worth the destruction of a nation and the harm to its people? Can't navigate thru the fact that Austin seeks to weaken Russia and Rice seeks to divide it into 11 exploitable nation-states? What else? Can't comprehend what Asia understands? all shipping will go thru the Arctic saving 33% of time and cost? Or that poor nations are suffering from dollar denominated trade thru currency pairings? Or that Powell refuses after the July 28th meeting on that subject to even bother to help? Oh yes, I'm a pro-Russian dumb Trumper hick and you're the RINO/Liberal genius. Good job jack, you win.
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.
If you are not a Russian and/or Trumpian propagandist, this comment could serve as an audition to be one.
On target
Wow, obviously you are under-educated. I won't even call you a liberal, because it's obvious here. But if you look at the actions in Ukraine since 2014 and Victoria Nuland answering directly to Joe Biden. If you at all understand how a strong dollar is used across the world and how nations are sick of being punished by it, I'd be amazed. If you can comprehend what happens when rates increase and how it isn;t a solution to supply side, heck, I might even consider you hopeful. But no, you go straight to duhhhhhhhh he mus' be a Trump liker or Russian, because after all, in your elitist mindset both are evil people well under your self-created stature now aren't we all who disagree with you? What comes next with you people? That's right, you will call all of us racists. What else Jack? Too lazy to read? Can't understand how the west possibly could use Covid to punish others? Think that an unwinnable war was worth the destruction of a nation and the harm to its people? Can't navigate thru the fact that Austin seeks to weaken Russia and Rice seeks to divide it into 11 exploitable nation-states? What else? Can't comprehend what Asia understands? all shipping will go thru the Arctic saving 33% of time and cost? Or that poor nations are suffering from dollar denominated trade thru currency pairings? Or that Powell refuses after the July 28th meeting on that subject to even bother to help? Oh yes, I'm a pro-Russian dumb Trumper hick and you're the RINO/Liberal genius. Good job jack, you win.
This is pure ad hominem