Inflation Deniers, Part 2

Having attended Harvard Divinity School back in the day and thereby having stayed out of harms’ way with respect to Lyndon Johnson’s sick plan to bring the Great Society to the Mekong River Delta, we know ritual incantation when we hear it.

This is Jay Powell’s explanation for why the Fed is counterfeiting $120 billion of fiat credit per month. This is also ritual incantation that long ago lost its connection to reality.

……we expect that it will be appropriate to maintain the current accommodative target range of the federal funds rate until labor market conditions have reached levels consistent with the Committee’s assessments of maximum employment and inflation has risen to 2 percent and is on track to moderately exceed 2 percent for some time.

In addition, we will continue to increase our holdings of Treasury securities and agency mortgage-backed securities at least at their current pace ($120 billion per month) until substantial further progress has been made toward our goals. 

These purchases, and the associated increase in the Federal Reserve’s balance sheet, have materially eased financial conditions and are providing substantial support to the economy. The economy is a long way from our employment and inflation goals, and it is likely to take some time for substantial further progress to be achieved. We will continue to clearly communicate our assessment of progress toward our goals well in advance of any change in the pace of purchases.

Do these foolish people ever even wonder about the vast disproportion between their ritualistically cited “goals” and the insidious impact of the “accommodative” policies that they deploy to purportedly further them?



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