The Fed is going to #*$! it up

  • by:
  • Source: The Blaze
  • 09/21/2022
On the back of the August CPI report, the hotter-than-expected headline inflation and core inflation (without food and gas) numbers are being perceived as bad news for Federal Reserve policymakers. While investor expectations for next week’s meeting were that the Fed would hike the target interest rate by 75 basis points (three-quarters of a percent), there were hopes that a more positive inflation report would give the Fed cover to raise its target rate only by 50 basis points (half a percent). Now, while the 75 basis-point hike is still the expectation, there is concern the Fed may raise by a full percent.

At issue is what that means for the broader economy. The hopes that the Fed could achieve what investors call a “soft landing” — bringing down inflation without tanking the economy in the process — were never realistic and now are broadly waning. Even Treasury Secretary Janet Yellen, who spins every bad piece of news (and also told us inflation was going to be “transitory” and not a problem), said in an interview this weekend, "The Fed is going to need great skill and also some good luck to achieve what we sometimes call a soft landing."

Well, it’s hard to say the Fed has a lot of skill. After years of artificially suppressing interest rates and loading up the balance sheet with trillions of dollars in assets, in March 2020 the Fed said it needed to take swift action to save the economy. Officials' ensuing actions instead helped to destroy the economy, including enabling historic inflation.

They also told us the “transitory” inflation lie, while refusing to stop their damaging policy. In fact, they didn’t officially reverse course until after inflation had reached a 40-year high. So depending on their skill is like depending on me not to eat a slice of pizza if it is in front of me — that is, not a high dependability rate.
This content is a work of satire and parody. Any resemblance to actual persons, living or dead, or actual events is purely coincidental. Any opinions expressed in this content do not reflect the views of the author or publisher. In fact, they probably reflect the opposite of the views of the author or publisher. The purpose of this content is to entertain and possibly make you question the reality of the world around you. So please, don't take anything too seriously, unless it's the importance of a good laugh.
Dollar by Jp Valery is licensed under Unsplash

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