Article

2022-09-01 Economy

Finger-Pointing Federal Reserve Admits They Can't Tame Inflation, Blames Congress

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Posted by DarthVader 2022-09-01 12:16|| || Front Page|| [7 views ] Top

#1 Saw my first Midterm Political Commercial yesterday. Some 30 second bit with Brandon shaking a different sets of hands every second, bragging up the Inflation Reduction Act getting passed.

Wonder what the Normies thought of that?

Posted by swksvolFF 2022-09-01 12:25|| 2022-09-01 12:25|| Front Page Top

#2 Congress is ultimately responsible for spending. And taxing. And we are perpetually caught in the cycle of everyone voting to re-elect their local crook.

Posted by M. Murcek 2022-09-01 12:39|| 2022-09-01 12:39|| Front Page Top

#3 Isn't the Fed the office responsible for pushing the computer buttons 'creating' new money that is then drawn upon by (favored) banking institutions for infusion into the economy? If the Fed were honestly (haha) independent, they could just refuse to create 'new money' and tell Congress to collect the money they want to spend.

Posted by Procopius2k 2022-09-01 12:53|| 2022-09-01 12:53|| Front Page Top

#4 Tame inflation? The government is relying on high inflation to get them out of the debt hole that is too large to tax or save their way out.

A managed 10 years of 10% inflation reduces the Federal debt by 60% in real terms. That it impoverishes the working class by a similar amount is a desired outcome for our protected rulers. Bug dinners for the working class and be grateful!

Posted by Snash Shairt9621 2022-09-01 14:02|| 2022-09-01 14:02|| Front Page Top

#5 ...Comment on Instapundit this morning:

"...What they're saying is that if Congress is the drunken husband who keeps drinking away the money, the the Federal Reserve is the enabling spouse who keep driving him home."

Mike

Posted by MikeKozlowski 2022-09-01 14:07|| 2022-09-01 14:07|| Front Page Top

#6 #3 Procopius 2K is right. The Fed is the part of the government that "creates" money.

And to be fair to them, M2 (the most commonly used measure of the money supply) hasn't budged since last December. However, we are still WAY above the levels of 2019 after the Covid-overreaction binge of money printing. It will take quite a while to absorb all of that before we see any meaningful effect of monetary policy.

Posted by Tom 2022-09-01 14:50|| 2022-09-01 14:50|| Front Page Top

#7 Exactly right, #4 Snash Shairt9621

Posted by Goober Uneager2038 2022-09-01 19:14|| 2022-09-01 19:14|| Front Page Top

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