Powell would like to go down in history like Volcker, for doing the right thing in the face of political pressure. Yesterday he admitted to a Senate panel that raising rates might cause a recession, and he did Biden no favors in the narrative department.
@KimDotcom· Here’s Fed Chairman Powell throwing Biden under the bus:
“Would you say the war in Ukraine is the primary driver of inflation?”
“No. Inflation was high before the war in Ukraine broke out.”
If we’re being fair though, we have to acknowledge that Trump’s stimulus checks, the Paycheck Protection Program, and the Fed’s own bailout of the bond market created this inflation. In all, the Cares Act airdropped $2.2 trillion of free money, while the Fed slashed rates to zero and invited Americans to consume their newly inflated home equity via cash-out refi loans. Powell doubled the Fed’s balance sheet, and was still printing money into 2022, well after we had seen major inflation. more