PRICE INFLATION WARNING: Trump Met With Head of Federal Reserve Bank Last Night

The Federal Reserve chairman and vice-chairman met last night with President Donald Trump at the White House to discuss the economic outlook, the Fed is reporting.


Jay Powell and Fed vice-chairman Richard Clarida met  Trump and Treasury secretary Steven Mnuchin for an informal dinner, the Fed said in a statement.

In its statement, the Fed said the dinner came at the White House’s invitation, and that:

Chair Powell's comments in this setting were consistent with his remarks at his press conference of last week. He did not discuss his expectations for monetary policy, except to stress that the path of policy will depend entirely on incoming economic information and what that means for the outlook.

Far from taking the Fed to task for printing money and manipulating interest rates, Trump is going to turn Powell into the next G. William Miller under whose watch as Fed chairman price inflation climbed to 11.8%.

In the EPJ Daily Alert, I am forecasting that price inflation, as measured by government statistics, will soon break just above the 3% range on its way to even higher levels. I expect the Fed to ignore the early advance and get severely behind in fighting inflation.

-RW