There should be no interest rate hikes at this time, United States Federal Reserve Chair Jerome Powell noted on Friday. At the moment, most economic risks are related to “longer” and “more persistent” supply bottlenecks, that result in high inflation, he said during the BIS-SARB Centenary Conference Panel discussion. He specified that the interest rates should not be changed as supply constraints are directly related to the coronavirus pandemic and “we don’t know how long” these and other issues will last.
Powell says inflation is ‘well above’ target
The inflation rate in the United States is now “well above” the 2% target, US Federal Reserve Chair Jerome Powell (pictured) noted on Friday. Answering questions at the Virtual Bank for International Settlements-South African Reserve Bank Centenary Conference, Powell pointed out that the central bank’s approach wasn’t “designed” for the current scenario, and added that the Fed’s two mandates of ensuring stable prices and full employment are “somewhat in tension.” Powell’s remarks were mostly in line with the central bank’s previously expressed stance that the tapering of asset purchases might come in the near future. NN talk about Taking out of both sides of your mouth. Powell admits inflation is running wild and at the same times he says he will not raise interest rates. Hear my words after talking the same shit in 1993 the fed funds rate was 3% and inflation was 2.60%. In 1995 the Fed Raised rates 300 bases point eventually bringing the Fed Funds rate to 6%. this was to lower inflation from 5,4% to 1.6%. One time in a single move they increased the FED Funds rate 75 bases points and kept raising them…. And as inflation was rising like now they claimed it was temporary. Look at the great danger now as inflation is running 5.7% and the Fed funds rate is 0%.. Now you can understand why i am adamant the Fed must and will raise rates 300 to 400 bases points. That will result in a Fed Funds rate of at least 3%. Taking our beloved ZEROES up to 5% and to maybe 6% depending how steep they decide to take the yield curve. These comming rate increases makes gold, silver the Crypto currencies a overwhelming short, when the time is right. And this will wipe out the stock market.