The Fed’s Inflation Obsession

If one needs convincing the Fed and mainstream economists are divorced from reality, read detailed economic explanations from those so called “experts.” A few sentences in reveals no economic theory employed, as exemplified by Fed head, Jerome Powell, addressing the world on the Fed’s new inflation objectives as part of the updated monetary policy strategy at the August 27 Jackson Hole symposium.

The Fed Is Planning Another Ultralong Period of Ultralow Rates

Jerome Powell fielded questions from reporters Wednesday, and he made it clear that the Fed is a long, long way from abandoning its current dovish policy stance. The Fed plans to keep interest rates near zero, while monetizing US debt, financing zombie companies, and pouring new dollars into the market through balance sheet purchases. But even that may not be enough, and the Fed is now hinting that even more fiscal support may be necessary.

Let’s look at some of the details.

Judy Shelton Won’t Toe the Fed’s Party Line. So She Can’t Get the Votes for Confirmation.

On Tuesday Reuters reported comments made by Republican senator John Thune:

Judy Shelton, U.S. President Donald Trump’s controversial pick to serve on the Federal Reserve’s interest-rate-setting panel, does not currently have the votes to win confirmation in the U.S. Senate.

Hope still remains as Senator Thune’s role as majority whip requires him to track votes made by Republicans; the official vote has not yet happened. In the senator’s words:

Joey Rothbard

Today would have been the ninety-second birthday of JoAnn Rothbard, the beloved wife of Murray Rothbard for forty-two years. In the dedication to America’s Great Depression, he called her “the indispensable framework,” and anyone who knew them could have no doubt why he said this.