Bloomberg: The Great Inflation Mystery

[Fairyland]

Bloomberg: The people who set interest rates don’t know what causes inflation, how to measure it, or how to move it up and down.

Quote

In his first press conference as chairman, Powell said, “There’s no sense in the data that we’re on the cusp of an acceleration of inflation. Like a cook lowering the flame under a pot, the Fed is trying to reduce the pace of growth from a boil to a simmer to extend the life of the almost nine-year expansion. History shows that once the central bank begins to raise interest rates, it often goes too far. Five of the seven credit-tightening cycles since 1970 have choked growth and ended in a recession. But without understanding more about inflation, it’s hard to know if the Fed is tightening too quickly, not quickly enough, or at about the right pace

 

[Sancho Panza]

11 minutes ago, TonyJ said:

These policy setters hardly sound useful. The market could do it better.

You are Ron Paul,I claim my fiver.

[awkwardturtle]

55 minutes ago, TonyJ said:

These policy setters hardly sound useful. The market could do it better.

The market already sets interest rates

[Assume The Opposite]

They also have no idea that private banks create the money supply. All the boosting of bank reserves with QE was missing the point; they don't need reserves to lend, they create money by lending. 

Private banks tend to mostly invest in mortgage lending and financial markets. Hence why they've seen massive asset inflation but not much else where. 

[winkie]

.......to get the debt out into the system buying the secure things they want people to buy with it have to keep the rates as low as possible......but low rates and high prices is not cheap money.....I know they need help to keep buying......give them help to buy.