Saturday, May 8, 2021

Kashkari Rages: I Have ‘Zero Sympathy’ for Wall Street Critics of the Fed

Neel Kashkari

Federal Reserve Bank of Minneapolis President Neel Kashkari said he has “zero sympathy” for critics on Wall Street, who slam the central bank’s super aggressive money pumping, reports Bloomberg.

“For my friends on Wall Street, and I have a lot of them, I hear from them all the time complaining about the Fed’s policies that are mucking up their trading strategies,” told Michael McKee on Friday in an interview on Bloomberg Television. “I have zero sympathy -- because there are still 8 to 10 million Americans who want to work, who ought to be working.”

Of course, he did not mention that as the lockdowns are reversed businesses are desperate for workers. But the unemployed won't get off the couch because they are collecting more from the government in terms of unemployment payments than they would be working. Money the government is handing out only because it can, thanks to the Federal Reserve and the money it is printing out of thin air.

“We need to rebuild this labor market and put them back to work. Then there will be plenty of time to normalize monetary policy,” he added.

Besides the irresponsible Fed money pumping that isn't required and will result in major price inflation, Kashkari is also misleading about "his friends on Wall Street."  The crony parts of Wall Street that he talks to are making money hand over fist in this easy money environment.

Of all the sectors, over the last 12-months, compensation experienced the highest jump in the financial sector.

From March 2020 to March 2021, compensation for private industry workers increased 2.8 percent but it climbed by  5.3 percent in the financial sector.

No one is complaining on Wall Street right now except the few principled wise outliers who understand how bad it will be when this ends. And there is no way an opportunist, establishment ladder climber like Kashkari is talking to them. 


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