Lane departure from previous two Fed morons:
Fed chair nominee Jerome Powell tells Congress: Measures to boost U.S. growth 'in your lane, not so much ours' https://t.co/PolpKRR0mQ pic.twitter.com/k9EEP5mGDq
— Real Time Economics (@WSJecon) November 28, 2017
4 comments:
Wow!!
This is an important signal.
Ben and Janet knew this and tried to say it in a why that didn't signal that the Fed (monetary authority) was powerless to deal with this kind of issue. Central bankers were very concerned that they would lose their authority, and it they lose that, they are also likely to lose their independence.
Powell just admitted, albeit somewhat obliquely, that the most powerful central bank in the world is out of ammo.
That's a big deal.
Why - they can't print any more money?
Or is it the realization that giving it all to the 0.1% causes negative growth?
N, all the Fed can do is exchange low yielding reserve balances for higher yielding assets and set rates lower to screw savers ... it’s of no help...
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