Saturday, March 9, 2019

Fed Chairman Powell: We Are Going To Take A Wait and See Approach

Oh boy, they are really going to let price inflation run hot.

"With nothing in the outlook demanding an immediate policy response and particularly given muted inflation pressures, the Committee has adopted a patient, wait-and-see approach to considering any alteration in the stance of policy," Federal Reserve Board Chairman Jay Powell said Friday night in a speech to the Stanford Institute of Economic Policy Research in Stanford, Calif.

He made this comment as if price inflation had not spiked in 2011. And as if CPI growth hasn't been basing at more than 3X the 2011 percentage change level, which suggests a potential serious upside spike that a blind amateur chart reader could spot.

Percentage Change Core CPI (Jan. 2009 to Jan. 2019)

Especially since money supply over the same period has been climbing like this.

M2 Money Supply (Jan. 2009 to Jan. 2019)

Powell also said that the Fed is "undertaking a year-long review of the Federal Reserve's monetary policy strategy, tools, and communication practices. The review will involve a series of 'Fed Listens' events around the country. These will include town-hall-style meetings and a conference where academic and nonacademic experts will share their views. These events will inform staff work and FOMC discussions as we plan for the future. While this is the first time the Fed has opened itself up in this way, many central banks around the world have conducted similar reviews, and our approach builds on their experiences."

And all this time, I thought I told the Fed all it needed to know in April 2012.


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