Jerome Powell September Fed Speech Transcript: Fed Cuts Rates for 2nd Time in 2019 — Ryan Taylor

Victoria Guida: 25:18 Victoria Guida with Politico. Another money-market question. Banks have been pointing to liquidity rules as having contributed to some of the volatility we’ve seen in repo markets and potentially some capital rules as well. Are you all looking at whether some tweaks to the liquidity coverage ratio might help and also, what is the status of the net stable funding ratio rule? Are you all still planning on putting that out soon?

Jerome Powell: 25:47 I think if we concluded that we needed to raise the level of required reserves for banks to meet the LCR, we’d probably raise the level of reserves rather than lower the LCR. It’s not impossible that we would come to a view that the LCR’s calibrated too high, but that’s not something that we think right now. On the other hand, it might be that more reserves are needed in which case we are in a position to supply them.

Jerome Powell: 26:12 In terms of the net stable funding ratio, I believe we put it out for comment and got comments and I believe we’re looking at finalizing that in the relatively near future.

Victoria Guida: 26:28 Just a follow up, in terms of tweaks to the LCR, there’s also been some talk about potentially giving banks some room in times of stress to maybe dip into their liquidity buffers.

Jerome Powell: 26:40 I think we want banks to use their liquidity buffers in times of stress rather than pull back from the markets and pull back from serving their clients as a general rule....

Rev
Jerome Powell September Fed Speech Transcript: Fed Cuts Rates for 2nd Time in 2019
Ryan Taylor

Fed Chair Powell gets it wrong, just as did Bill Dudley.

More proof we are ruled by morons. 

The battle line is drawn, with the ruling elite and neoclassical economists at the center and the flanks occupied by Austrians and Libertarians on the right and clueless progressives on the left, with corporate media in the background, facing off with the MMT economists at the center flanked by MMT advocates, backed by a public that agrees with genuine progressive goals. Now it is a battle for hearts and minds.

Quartz

Actually, deficits do matter, says Fed chairman Jerome Powell

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'Just wrong': Jerome Powell rejects AOC's theory about government debt

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Fed chairman Jerome Powell shoots down Ocasio-Cortez's big deficit idea

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Jerome Powell Says the Concept of MMT Is 'Just Wrong'

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Powell says economic theory of unlimited borrowing supported by Ocasio-Cortez is just 'wrong'

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"It's Just Wrong" - Fed Chair Powell Destroys MMT Dreams

Tyler Durden

Reuters — Fed plans major review of how it pursues inflation, employment goals

The Federal Reserve will conduct an extensive review next year of how it tries to guide the U.S. economy, the U.S. central bank said on Thursday.

“Now is a good time to take stock of how we formulate, conduct, and communicate monetary policy,” said Federal Reserve Chairman Jerome Powell, noting that the Fed was close to meeting its goals of maximum employment and a 2 percent inflation rate. 

In a statement, the Fed said it would reach out to a “broad range” of stakeholders and that it planned to host a research conference in June to support the review. The research conference will be held at the Federal Reserve Bank of Chicago.

Admission that current policy is not working?

Reuters
Fed plans major review of how it pursues inflation, employment goals

BIS — Speeches by Zhou Xiaochuan, Jerome H Powell and William C Dudley

Bank for International Settlements
Zhou Xiaochuan: Prospects of the Chinese economy - broad-based growth
Speech and Q&A by Mr Zhou Xiaochuan, Governor of the People's Bank of China, at the 32rd G30 Annual International Banking Seminar, Washington DC, 15 October 2017.

Jerome H Powell: Introductory remarks
Speech by Mr Jerome H Powell, Member of the Board of Governors of the Federal Reserve System, at the Roundtable of the Alternative Reference Rates Committee, The Federal Reserve Bank of New York, New York City, 2 November 2017.

William C Dudley: Lessons from the financial crisis
Remarks by Mr William C Dudley, President and Chief Executive Officer of the Federal Reserve Bank of New York, at the Economic Club of New York, New York City, 6 November 2017.

Here we go again...Obama appoints two new "fiscal conservatives" to Fed board

Here we go again as if we haven't had our fill of this lunacy. More fiscal conservatives in the Obama Administration. And you guessed it!...they've got either Harvard or Goldman Sachs' ties. (Or both!)

Jerome Powell and Jeremy Stein. Powell is a lawyer with no economics background (bad) and Stein is a Harvard professor (worse!).

Powell quote:

“I am by any fair reckoning a fiscal conservative,” Powell, who goes by Jay, said in a May 16 interview with Bloomberg Television. At the same time, allowing a default is “just not a risk that you run.” “That doesn’t mean that you don’t negotiate very hard to get additional spending cuts and get the deficit under control,” he said. “You do. But that crosses the line into hostage taking, I’m afraid, and is just tactically unacceptable.”

Did you get that part about "getting the deficit under control?"

And here's a Stein quote:

“The Fed in the early part of this decade would have been better had they been a little bit more aggressive in dealing with the housing bubble in its early stages, both through interest-rate policy and potentially through worrying a little bit more about the buildup of all this leverage on bank balance sheets,” Stein said...
Nothing in there about rampant fraud and lax oversight. Only implies low interest rates created the "bubble" and there was too much leverage. Peter Schiff stuff.