Strong demand and high incomes are a 'problem' to The Fed,...

Strong demand and high incomes are a 'problem' to The Fed, waffler Powell must be devastated that some of those printed up trillions are flowing to ordinary Americans. Surely there must be a way to ensure that the gravy only flows to banksters and corporates?!



Powell still maintained that inflation is transitory. "The problem right now is that the demand is very strong, and incomes are high," Powell told reporters on Wednesday. "If you look behind the headline numbers, you'll see that the incoming data are consistent with the view that prices that are driving that higher inflation is from categories that are being directly affected by the recovery from the pandemic and the reopening of the economy. Over time, these things driving up inflation will be temporary … The experience with lumber prices is illustrative of this. Prices that have moved up really quickly because of the shortages and bottlenecks should stop going up. And in some cases should actually go down. And we did see that in the case of lumber," he said. "Our expectation is that these high inflation readings that we're seeing now will start to abate. And it'll be like the lumber experience."