Fed chair Jerome Powell didn't say the oil shock will be transitory, but he might as well have

 

 ... Powell said raising rates now could have negative effects on the economy later. He noted that Fed rate moves have a lagged impact on the economy, so tightening here wouldn’t help the inflationary impact of the Iran war.

“By the time the effects of a tightening in monetary policy take effect, the oil price shock is probably long gone, and you’re weighing on the economy at a time when it’s not appropriate. So the tendency is to look through any kind of a supply shock,” he added. ...

More.

Mistaken yet again.

We have permanently higher prices across the board as a result of the COVID shock. 

Trump thinks high interest rates are all Powell's fault when they are HIS: The war in Iran, the tariffs, the addition of $2 trillion in debt in seven months

 

Larry Kudlow has really devolved, falsely calling Fed Chair Powell the Fed’s first forever board member

Larry knows that's a lie.

He knows it's Senator Thom Tillis who is stopping Kevin Warsh from getting a Fed chair confirmation hearing, not Jerome Powell.

But he never mentions that.

Truly disgraceful.

I guess Larry wants no one in charge at the Fed when Powell's term expires on May 15. 

Meanwhile Alan Greenspan remained as Fed chair in 1996 pending confirmation for his next term, which took almost four months, and Marriner Eccles stayed on as Fed chair for over two months after his term expired, and on the board of governors after that from 1948-1951. G. William Miller stayed on as Fed chair for over a month in 1978 after his term expired, and Chair Powell himself had to wait over three months in 2022 for confirmation to his second term.

But Larry doesn't mention any of that either, because he's a liar.  

Powell is doing his duty while Mad King Ludwig tries to wreck everything he touches, and Larry Kudlow has become nothing but Trump's partisan hack.

The New York Sun and Real Clear Politics should be ashamed of themselves for circulating this trash.  

Powell's Bizarre Plan To Stay On at the Fed

Larry Kudlow, New York Sun

Winning . . .

All today: 

Bill to fund DHS fails in the Senate

 

Judge blocks Pete Hegseth’s censure of Sen. Mark Kelly over troops video, for now

 

Fed chair drama: Tillis pours cold water on off-ramp for Powell criminal probe

 

Trump administration will end immigration enforcement surge in Minnesota: Homan

 

 

 

Fed Chairman Jerome Powell says economic activity has been solid lol

 10-year Treasury yield rises after Fed keeps rates steady, notes ‘solid’ economy

... “Available indicators suggest that economic activity has been expanding at a solid pace. Job gains have remained low, and the unemployment rate has shown some signs of stabilization,” the post-meeting statement said. “Inflation remains somewhat elevated.” ... 

“I think, and many of my colleagues think, it’s hard to look at the incoming data and say the policy is significantly restrictive at this time,” Fed Chair Jerome Powell said in a press conference. ...

The economy should be three times the size it is, $90.4 trillion in GDP instead of $31.1 trillion.

 

 

Trump attack on Powell causes Senate Republicans Tillis and Murkowski to threaten to block his future nominees to the Fed

Good. 

Powell investigation: Drumbeat of Republican opposition grows on Capitol Hill

Former Fed Chairs finally stand up for Powell in public

 Greenspan, Bernanke, and Yellen say Trump using ‘prosecutorial attacks’ to undermine Fed

... “The reported criminal inquiry into Federal Reserve Chair Jay Powell is an unprecedented attempt to use prosecutorial attacks to undermine that independence,” a statement backed by more than a dozen signatories said.

“This is how monetary policy is made in emerging markets with weak institutions, with highly negative consequences for inflation and the functioning of their economies more broadly,” it continued. “It has no place in the United States whose greatest strength is the rule of law, which is at the foundation of our economic success.” ... 

“The Federal Reserve’s independence and the public’s perception of that independence are critical for economic performance, including achieving the goals Congress has set for the Federal Reserve of stable prices, maximum employment, and moderate long-term interest rates,” the statement said. ...

Mad King Ludwig's disgusting vendetta against Jerome Powell escalates into DOJ criminal probe of Fed Chair's oversight of building renovations

 What this really is is Mad King Ludwig's builder's envy. He thinks he should be in charge of the literal remaking of every Washington edifice, just as he thinks he should be in charge of everything else, including interest rates.

Powell's term expires on May 15, but the lunatic we put in charge of the country just can't let Powell fade away without picking this disgusting fight over nothing.

The Department of Justice should be ashamed of itself, but like most MAGAts, it is incapable of shame. 

Watch here. 

 

 

Trump's mortgage bond proposal imitates his own "stupid" Jerome Powell on the financing side to reduce interest rates, which is what helped make homes 50% more unaffordable in the first place

 

The perfect storm of government MBS purchases and sub-3% mortgages through ZIRP in 2021 combined to rocket housing values by 50%.

Housing reached record low affordability a year later, falling to 17.22%.

Yeah, let's do more of that.

Back in the 1990s, before Bill Clinton and the Uniparty got a hold of it and turned it into a commodity, housing was stable and affordable as median income bought 25% of a home. 

Trump hasn't gotta clue what to do.

 

 Mortgage rates drop to lowest level in nearly 3 years as Trump orders buying of $200 billion in mortgage bonds

... In the first two months of the Covid pandemic, as markets reeled, the Federal Reserve purchased $580 billion in agency MBS. It then continued buying more throughout the year. From March 2020 through June 2021, the Federal Reserve increased its agency MBS holdings from $1.4 trillion to $2.3 trillion, according to the Dallas Fed.

The Federal Reserve also lowered its own lending rate to zero. The combination brought the average rate on the 30-year fixed mortgage to record lows, hitting just 2.75% at the start of 2021, according to Mortgage News Daily. ...

... But Zelman also points out that in the broader home market it’s not just the mortgage rate, but overall affordability that is keeping buyers sidelined. Consumers are stretched, and home prices are close to 50% higher than they were pre-pandemic, ironically because of those record-low mortgage rates brought on by MBS purchases. ...

 

 

Gay Hitler should just fire the incompetent loser who appointed him in the first place

 Trump revives threat to sue Powell for ‘gross incompetence’

Fed Chair Jerome Powell approval at 44%, much higher than Trump's at 36%, in latest Gallup Poll

 Gallup, here.

 

Donald Trump is responsible for all three of these guys

 

The Financial Times is full of it about a rate cut, and can't even spell

 

 ... the Fed chair is clearly more convinced by the employment side of that equation, indicating that “adjustment” may be necessary — a big hint that the central bank is poised to restart cuts in interest rates next month.

This was itself a surprise to investors, who seemingly were expecting a snoozefest. The dollar dropped sharply, government bonds jumped in price and stocks picked up at the end of a rough week as markets baked in those new expectations. A cut next month is now seen as a done deal, with likely chops in the following two meetings too. ...

If employment data for August picks up from its summer lull, which we will not know until the first week of September, then the Fed will be in the awkward spot of cutting interest rates in to a decent jobs market with inflation still running above target. “The Fed would risk a policy error if it were to cut rates,” warned analysts at Bank of America. ...

The Fed is supported by structures that protect its independence, but anyone who doubts Trump’s desire and willingness to bend it towards his will is kidding themself ... 

More.

Complete tosh. 

The Fed is data dependent, and there are two inflation readings and one employment report intervening before the next rate decision. 

Powell never even got close to saying the FOMC was poised to make a policy change. His remarks, as always, emphasize data and contextualize hypotheticals, that's all.

The press are scoundrels trying to bully the Fed like this. They are on Trump's level in Dante's Inferno. 

Powell said conditions "may warrant adjusting our policy stance." That could include a rate hike as well as a rate cut. He said "risks to inflation are tilted to the upside" while "the labor market appears to be in balance" even after the huge downward revisions to total nonfarm employment which got the head of the BLS fired.

In fact, he said that the latest data for July core pce inflation, which won't be out until Friday, indicate 2.9% year over year, an uptick from June's 2.8%. That's not good news for the rate cut cheerleaders, and that's why no one is reporting it. 

The FOMC is not going to cut the interest rate if that happens and employment remains steady.

August 29 and September 5 will tell us what is likely to happen on September 17, not The Financial Times. Fittingly, the ignoramus for The Financial Times ends her column with a preposition.

And don't forget core cpi inflation on September 11. Powell & Company will have all the very latest data for their decision, on which they will rely:

Monetary policy is not on a preset course. FOMC members will make these decisions, based solely on their assessment of the data and its implications for the economic outlook and the balance of risks. We will never deviate from that approach. 

Dow Jones Industrial Average closes at new record high Friday Aug 22 after Powell throws red meat

 

 Dow surges more than 800 points to post record close as Powell speech fuels rally: Live updates

The Dow Jones Industrial Average rallied to an all-time high Friday after Federal Reserve Chair Jerome Powell signaled the central bank could begin easing monetary policy next month.

The Dow climbed 846.24 points, or 1.89%, reaching a fresh high and closing at a record level of 45,631.74.

The S&P 500 rose 1.52% to end at 6,466.91. At its session high, the broad market index came within three points of its record.

The Nasdaq Composite gained 1.88% and settled at 21,496.53. ...

 

 

Trump adds $1 trillion to the national debt in record time and S&P Global underscores its own irrelevance by maintaining the U.S. AA+ credit rating

 Trump tariff revenue expected to offset tax bill impact, S&P says in U.S. credit rating hold

... "We could lower the rating over the next two to three years if already high deficits increase ..." lol.

 These people are afraid of Trump.

They don't want to be singled out for Trump's daily Two Minutes Hate.

They don't want to be the next Jerome Powell, or Lisa Cook, or Volodymyr Zelensky.

Meanwhile year to date the Trump deficit is running $112 billion ahead of Biden's last deficit. DOGE so-called spending cuts and Trump Tariffs have done nothing to reduce it.

 

 

 

Why did Larry Kudlow cling to his job as Director of Trump's National Economic Council after he had a heart attack in June 2018?

 

 

Why Is Powell Clinging to His Job?

Larry Kudlow, New York Sun

 

Get off it, Larry. 

Well duh

 

Trump backs further away from firing Powell: ‘He’s going to be out pretty soon anyway’

What a shock, right, Trump's attacks on Powell's extravagance turn out to be completely hypocritical, including when you consider that he redecorated the Oval Orifice in gold leaf

 

Trump appointees pushed more marble in Fed building renovation White House now attacks

 

... As the Fed moved forward with plans to renovate its Great Depression-era headquarters in Washington during Trump’s first term, it faced concerns in 2020 during a vetting process involving Trump appointees, who called for more “white Georgia marble” for the facade of building.

 

The Fed’s architects said the central bank had wanted glass walls to reflect the Fed as a transparent institution, but three Trump appointees to a local commission felt marble best fit the building’s historic character. Marble was added as a result, according to the minutes of the Commission of Fine Arts, which advises the federal government on architecture. ... 

Russ Vought, Trump’s top budget adviser, cited “premium marble” in a letter to Powell last week as an example of the “ostentatious overhaul.” ... 

Trump issued [an] executive order in December 2020, which criticized modernist architecture and expressed a preference for “beautiful” classical buildings with more [costly] traditional designs. ...

KAOS denies plan to fire Powell

 

 

 Trump denies that he plans to fire Powell: ‘Highly unlikely’

The future looks bright for gold

 Trump ‘likely’ will fire Fed Chair Powell ‘soon’: White House official

These people are nuts.