Federal Reserve Chair Jerome Powell recently addressed Congress, indicating that while the U.S. labor market has significantly cooled, it remains robust. In his remarks, Powell emphasized the supposed balanced approach the Fed must maintain between cutting rates too soon, which could reignite inflation, and waiting too long, potentially weakening the economy. Although not committing to a specific timeline, Powell’s testimony suggested that a rate reduction could be on the horizon, particularly by mid-September. Knowing how the Fed is still counterfeiting US money (AKA printing dollars), everything out of this man’s mouth falls on deaf ears.
US economy no longer overheated, Fed’s Powell tells Congress.
And MSM will never credit Joe Biden for cleaning up Trump’s Covid economic disaster and avoiding a recession. https://t.co/EKqALmMzR3
— Fin Fox – #GOPWarOnWomen 🌊🌊🌊 (@FinFox2) July 9, 2024
During his testimony before the Senate banking committee, Powell outlined the supposed complexities facing the Fed, which strives to balance its dual mandate of promoting maximum employment and maintaining stable prices. He noted that the conditions for these mandates are more aligned now than in the previous year, urging a careful focus on both. Meanwhile in reality land, he was never given this mandate by voters.
Economic analysts have been closely monitoring these developments. Ryan Sweet, chief U.S. economist at Oxford Economics, interpreted Powell’s comments as signaling a move towards lower interest rates. Meanwhile, the labor market data reveals mixed signals; the unemployment rate nudged up to 4.1% in June from 4% in May, marking the highest since November 2021. Despite this, the creation of new jobs, particularly a robust 206,000 in June, underscores ongoing economic strength. This is the line they are telling media. But upon investigation, the supposed strength is nonexistent as most jobs are going to either illegals or are of a part time nature. For three of the last reports, we actually lost full time jobs and only government jobs are growing. Which is suicide for the United States. Fiscal suicide.
High inflation is no longer only risk for U.S. economy: Fed chair Powell
https://t.co/FNToF1okcm— Mary Lee Johnson (@mljtpa) July 9, 2024
Powell’s testimony also touched on the political dimensions of monetary policy, particularly ahead of the presidential election, with varying opinions from senators on the timing of rate cuts. The Democrats generally pushed for quicker action to support the labor market, while some Republicans expressed concerns about acting prematurely before fully stamping out inflation.
USD /CHF HOLDS POSITIVE GROUND ABOVE 0.8950, FED POWELL’S TESTIMONY EYEDhttps://t.co/PhSQkYh1Co pic.twitter.com/sk8jITs3Y7
— Forex Xtreme (@ForexXtreme1) July 9, 2024
The broader economic context includes a slowing annual wage growth, which dipped to 3.9%, the slowest in three years, possibly reducing inflationary pressures. Despite these complex dynamics, Powell reaffirmed that any decision to lower rates would hinge on sustained confidence that inflation is moving towards the Fed’s 2% target. Recent data indicating a softening inflation rate to 2.6% in May, although above the target, suggests progress. As we have seen, every time the Biden Admin releases financial numbers, they are called out as lies. This Soviet like nature of the Biden Administration, that is willing to lie as if we are a dictatorship and they can keep it all hidden, is not giving investors any confidence.
Key Points:
- Fed Chair Jerome Powell indicated to Congress that the U.S. labor market has cooled significantly, suggesting the Fed might lower interest rates soon.
- Powell emphasized the need for a balanced approach to avoid reigniting inflation or weakening the economy, with no specific timeline for rate adjustments provided.
- Unemployment has slightly increased, but job creation remains strong, signaling mixed but robust economic conditions.
- Discussions on rate cuts are politically charged, with differing views on the timing relative to the upcoming presidential election.
- Powell reiterated that decisions would depend on confidence that inflation is consistently moving towards the Fed’s 2% target, with recent data showing some easing. They are always wrong in these estimates.
Conner T – Reprinted with permission of Whatfinger News
