Jerome Powell aspires to be remembered as a heroic Federal Reserve chair, akin to Tall Paul #VOLKER.
However, Volker was largely unpopular during much of his tenure.
The primary function of the Federal Reserve is to finance the federal #government and ensure liquidity in US capital markets.
Controlling price inflation should not rely on costly credit.
Instead, it should be achieved by stimulating growth and productivity through innovation and by rewarding companies that wisely allocate capital, ultimately leading to robust cash flows... innovation thrives on affordable capital.
While innovation can lead to misallocations and speculative errors, this is a normal aspect of the process.
(BUT it is crucial that deposits and savings are always insured and kept separate from investment capital.)
By maintaining higher interest rates for longer than necessary, J POW is negatively impacting innovators, capital allocators, small businesses that need cheap capital to function effectively, job creators, and the overall growth environment.
Addressing price inflation is a far more favorable situation than allowing unemployment to soar to intolerable levels.
"Losing my job feels like a depression".
But if I have to pay more for eggs, I can always opt for oats.
However, Volker was largely unpopular during much of his tenure.
The primary function of the Federal Reserve is to finance the federal #government and ensure liquidity in US capital markets.
Controlling price inflation should not rely on costly credit.
Instead, it should be achieved by stimulating growth and productivity through innovation and by rewarding companies that wisely allocate capital, ultimately leading to robust cash flows... innovation thrives on affordable capital.
While innovation can lead to misallocations and speculative errors, this is a normal aspect of the process.
(BUT it is crucial that deposits and savings are always insured and kept separate from investment capital.)
By maintaining higher interest rates for longer than necessary, J POW is negatively impacting innovators, capital allocators, small businesses that need cheap capital to function effectively, job creators, and the overall growth environment.
Addressing price inflation is a far more favorable situation than allowing unemployment to soar to intolerable levels.
"Losing my job feels like a depression".
But if I have to pay more for eggs, I can always opt for oats.
Nota
GHOST RECESSION under the Biden show confirmed with the Jobs revisions
Penafian
Maklumat dan penerbitan adalah tidak bertujuan, dan tidak membentuk, nasihat atau cadangan kewangan, pelaburan, dagangan atau jenis lain yang diberikan atau disahkan oleh TradingView. Baca lebih dalam Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak bertujuan, dan tidak membentuk, nasihat atau cadangan kewangan, pelaburan, dagangan atau jenis lain yang diberikan atau disahkan oleh TradingView. Baca lebih dalam Terma Penggunaan.