The main event of the week in economic policy may sound bland: “Economic Outlook and Framework Review.” However, Fed Chair Powell’s speech on Friday at Jackson Hole will be anything but bland.
It's frustrating that the folks we expect to caretake the health of our economy aren't also given more control over things like taxing (and tax breaking) and spending.
I'm still hoping for drastic wage inflation at the lower end.
The folks that control the health of our economy ARE responsible for the lack of taxing and regulation that benefits our U.S. Oligarchic Kleptocracy through THEIR politicians that have been corrupted via campaign investments (not donations) by these same folks.
Regarding today's helpful Bloomberg column by Claudia Sahm, I doubt whether publishing the Tealbook would placate anyone. I'm dubious about livestreaming the FOMC meetings as well. I don't think current disputes are grounded in public spirited disagreement.
But her list contained things to consider (not necessarily implement) and planning for a greater openness scenario makes sense. And becoming explicit about the costs of political interference as well as safeguarding the Fed's branch President selection is sound advice.
I think Fed should take a look at Australia,s 2-3 per cent inflation target range. Agreed that Powell has been a good Fed chair. Trump,s best appointment ever. Will incoming governor Miran be at Jackson hole? If yes, will he openly challenge chair Powell?
I am not an expert on this. As best I understand it, the Fed interprets "maximum sustainable employment" to mean employment level consistent with 2 per cent inflation target.
I’m not an expert either. As you say, that’s what they’re supposed to do, and maybe they say it now and again, but when have they consistently acted to promote full employment? It’s not what they say, it’s what they do.
My POV is their primary and overriding concern is inflation, as it aligns with the concerns of their Moneyed Interests.
I don't understand why an historical amount of inflation (year-over-year), rather than an annualized monthly rate of inflation, is used a guideline to monetary policy. It is also strange that the Fed seems to ignore the fact that federal spending levels are providing a massive stimulus in demand and there's no sign of it changing.
I don't think the Fed is ignoring the fiscal stimulus, but it is probably aware that tax cuts, especially at higher income levels, are much less stimulative than spending. It would be interesting to see a good simulation asking what interest rates would be without reckless government borrowing. For sure we would be a lot closer to a Zero Lower Bound.
Isn't it magical thinking to adhere to the 2% target as climate change eats away at supply chains to a greater extent with each passing year? Also, is it possible that financial stability might be a greater priority when you have record margin debt, credit spreads, and Athene reacting to regulatory scrutiny by saying "have you looked around at the other guys" (https://www.ft.com/content/0e583022-0650-4079-957e-3377ec958411)?
On the target, I could foresee discussions to raise it in the future. With financial stability, the Fed has tools outside of monetary policy, like bank regulation, that are better suited.
I wonder if they see oligopoly (I. Weber, S. Storm) as an additional reason to tolerate a higher rate of inflation, or if the WH will impress this upon them lol. You have to be impressed that DGSE could survive 2008. Maybe the next crisis will finally do it in.
Passengers please fasten your seatbelts, there's heavy turbulence up ahead. Also be prepared to brace for a crash landing.
It's frustrating that the folks we expect to caretake the health of our economy aren't also given more control over things like taxing (and tax breaking) and spending.
I'm still hoping for drastic wage inflation at the lower end.
The folks that control the health of our economy ARE responsible for the lack of taxing and regulation that benefits our U.S. Oligarchic Kleptocracy through THEIR politicians that have been corrupted via campaign investments (not donations) by these same folks.
Regarding today's helpful Bloomberg column by Claudia Sahm, I doubt whether publishing the Tealbook would placate anyone. I'm dubious about livestreaming the FOMC meetings as well. I don't think current disputes are grounded in public spirited disagreement.
But her list contained things to consider (not necessarily implement) and planning for a greater openness scenario makes sense. And becoming explicit about the costs of political interference as well as safeguarding the Fed's branch President selection is sound advice.
Thanks as always for clear and cogent analysis
Folks complain about so-called Communist central planning.
There aren't better examples of ultimate central planning than the Capitalist Federal Reserve, Wall Street, and the City of London.
I think Fed should take a look at Australia,s 2-3 per cent inflation target range. Agreed that Powell has been a good Fed chair. Trump,s best appointment ever. Will incoming governor Miran be at Jackson hole? If yes, will he openly challenge chair Powell?
How about the Fed's responsibility to maintain full-employment?
I am not an expert on this. As best I understand it, the Fed interprets "maximum sustainable employment" to mean employment level consistent with 2 per cent inflation target.
I’m not an expert either. As you say, that’s what they’re supposed to do, and maybe they say it now and again, but when have they consistently acted to promote full employment? It’s not what they say, it’s what they do.
My POV is their primary and overriding concern is inflation, as it aligns with the concerns of their Moneyed Interests.
Credit policy should NOT get conflate with inflation reg policy
We must construct an independent price level path monitoring and regulating system
Consider a review of colander Lerner cap and trade warrant system
To internalize firm mark up
inflation impact
Full-employment?
Full employment is
a multi dimensional
Macro / micro task of the state
Requiring several mutually
co ordinated lines of attack
Some system wide
some local
If the goal is income according to
Life time work
The state here in north America
Is far from capable.
Of supporting
That righteous mission
I don't understand why an historical amount of inflation (year-over-year), rather than an annualized monthly rate of inflation, is used a guideline to monetary policy. It is also strange that the Fed seems to ignore the fact that federal spending levels are providing a massive stimulus in demand and there's no sign of it changing.
Fiscal Deficit as macro thruster
Depends crucially on
Points of injection
Tax cut for billionaires
Purchase of tariffed laden imports
Dont be too surprised
If all this to and from
Ends up really mostly
a capital cloud show
Increased demand for real domestic output may be marginal
I don't think the Fed is ignoring the fiscal stimulus, but it is probably aware that tax cuts, especially at higher income levels, are much less stimulative than spending. It would be interesting to see a good simulation asking what interest rates would be without reckless government borrowing. For sure we would be a lot closer to a Zero Lower Bound.
Nominal interest rates
are a policy choice
Like a roulette wheel
with a hidden brake & pedal
Isn't it magical thinking to adhere to the 2% target as climate change eats away at supply chains to a greater extent with each passing year? Also, is it possible that financial stability might be a greater priority when you have record margin debt, credit spreads, and Athene reacting to regulatory scrutiny by saying "have you looked around at the other guys" (https://www.ft.com/content/0e583022-0650-4079-957e-3377ec958411)?
On the target, I could foresee discussions to raise it in the future. With financial stability, the Fed has tools outside of monetary policy, like bank regulation, that are better suited.
Yes regulations on credit standards and mortgage conditions
I wonder if they see oligopoly (I. Weber, S. Storm) as an additional reason to tolerate a higher rate of inflation, or if the WH will impress this upon them lol. You have to be impressed that DGSE could survive 2008. Maybe the next crisis will finally do it in.
Wr9ng pokicy tree.
Jump down and find a regulation sapling
Bank regulation
By who ?
The gang that cleaned up
after fall 2008
Magical public thinking
Is special interest private thinking
Ritualized and numericated
for enhanced mass credulity and misdirection