You are here
Fed chairman says making up for lost inflation is 'great idea'
By Brendan Greeley
Financial Times, London
Saturday, September 7, 2019
In Zurich on Friday, Jay Powell, chairman of the Federal Reserve, repeated his mantra from this summer that the Fed will continue to "act as appropriate to sustain the expansion." Markets were unsurprised and unmoved.
But after that, he got technical.
Talking about the challenges of easing in a potential downturn when policy rates are already close to zero -- something he has called the "pre-eminent monetary policy challenge of our time" -- he offered one specific strategy: make-up inflation.
... Dispatch continues below ...
Buy, Sell, or Store Precious Metals with Money Metals
Money Metals Exchange, a national bullion dealer recently voted "Best in the USA" by a worldwide ratings group --
https://www.moneymetals.com/news/2015/02/03/worldwide-ratings-organizati...
-- is a great low-cost source for precious metals coins, rounds, and bars. Money Metals also pays handsomely when you wish to sell your precious metals.
Shop online with Money Metals Exchange here --
https://www.moneymetals.com/buy
-- or by calling 1-800-800-1865.
Meanwhile, Money Metals Depository will store your precious metals in a segregated account at low cost:
https://www.moneymetals.com/depository
When a central bank undershoots its inflation target, Mr. Powell explained, it can promise to the public that it will overshoot in the future. As it makes up for lost inflation, the bank would also be making up for lost growth.
"If the public understands and acts up on that, we limit the damage from the recession," he said. "It's a great idea."
It was not the first time Mr Powell has talked about make-up strategies. At a conference in Chicago in June, part of the Fed's sweeping review of how it both functions and talks to the public, he lingered on the idea.
Policymakers had talked about make-up inflation after the financial crisis, but had decided against it. For make-up strategies to work, Mr. Powell said in Chicago, "households and businesses must go out on a limb, so to speak, raising spending in the midst of a downturn." ...
... For the remainder of the report:
https://www.ft.com/content/7224c41e-d0cf-11e9-99a4-b5ded7a7fe3f
* * *
Join GATA here:
New Orleans Investment Conference
Hilton New Orleans Riverside Hotel
Friday-Monday, November 1-4, 2019
https://neworleansconference.com/noic-promo/powellgata/
* * *
Help keep GATA going:
GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:
To contribute to GATA, please visit:
