He thinks he is the Good Lord Himself and has the power to reduce inflation to 2%.
We are living in economically "unchartered times". Microeconomic principles do not apply to these times because of the vast array of interdependent and independent variables that are at play. At the same time, the FED and RBs have gone against basic economic principles and printed money to keep the good times rolling.
OK so I said Powell was mad. I actually do not think he is, so what is his game?
It is most likely that he is trying to "browbeat" inflation into submission? That will not work - I suspect that there will be a pull-back in his hawkish stance in practice. This will likely be for two key reasons. The first is that the the r that is required is such that it will create wholesale destruction across the board. The second is that it will simply not work in the current climate anyway because of the variables that are in play. If we had dealt with Ukraine in a completely different way we MAY have had SOME hope.
AIMOO!
IVR Price at posting:
4.2¢ Sentiment: Buy Disclosure: Held
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