- Jun 6, 2007
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The Federal Reserve Board is poised to make a significant mistake that will see inflation remain way too high for significantly longer than it otherwise would leading to the same for higher than normal interest rates! At their next meeting scheduled for Jan. 31-Feb.1 Fed. Chairman Jay Powell has let it be known that he expects the Board to raise the Fed Funds rate by only a quarter point; prudence calls for the Fed to raise interest rates a half point at that meeting, for one more meeting raise it a half point than shift to quarter point hikes at their regular meetings. It is really important that the FED break the back of inflation "now" it cannot appear to the American public that the FED is struggling to get inflation under control, it cannot appear to the American public when they see the inflation rates for the months of January thru April that the inflation rate is in the four to five percent range where the FED is struggling and straining to get the inflation rate under four percent because then the American worker is going to want a wage increase for the year of four percent and they will get it and then that wage expense increase will cycle through to price hikes of products and services which will put pressure on inflation to keep it above four percent through this year causing the FED to maintain interest rates higher for longer!
The other thing that is critically important in getting the inflation rate out of the danger zone is the Republicans in Congress shouldn't legislatively give President Joseph Biden and the Democrats legislatively even a glass of water for the next two years until they stop their obstructionism of domestic fossil fuel production. Joseph Biden and his fellow extreme left wing zombies in Congress are acting like total and complete idiots and the Republicans need to stop it they do not need to obstruct domestic fossil fuel production to transition America to renewable energy they can continue with their initiatives to generate climate friendly energy production just stop their problem generation on the domestic fossil fuel industry, it is causing to much economic pain on ordinary Americans. Over the next two years this crazy agenda of Biden and his Democrat allies is going to cause added financial pain on American families that will be palpable it will cause searing pain to Americans when they purchase necessities. As the economy digests the FEDS higher interest rates and the FED's dialing back of interest rates the demand for gasoline, diesel and other oil and gas products will increase and because of the Democrat freeze on the Domestic fossil fuel industry and the market based pricing of these fuels which of course operate on the supply/demand curve and since supply will not be increasing these oil and gas products pricing will significantly increase and cause a significant increase in inflation hurting American families budgets. Sometimes in analyzing public policy problems commentators use metaphors to emphasize a point like "we have seen the enemy and it is 'us'" on this issue the following metaphor applies "we have seen the enemy and it is the extreme left wing Democrats in Washington that want to remove America from fossil fuel use even if it causes countless Americans severe truly severe pain!
The other thing that is critically important in getting the inflation rate out of the danger zone is the Republicans in Congress shouldn't legislatively give President Joseph Biden and the Democrats legislatively even a glass of water for the next two years until they stop their obstructionism of domestic fossil fuel production. Joseph Biden and his fellow extreme left wing zombies in Congress are acting like total and complete idiots and the Republicans need to stop it they do not need to obstruct domestic fossil fuel production to transition America to renewable energy they can continue with their initiatives to generate climate friendly energy production just stop their problem generation on the domestic fossil fuel industry, it is causing to much economic pain on ordinary Americans. Over the next two years this crazy agenda of Biden and his Democrat allies is going to cause added financial pain on American families that will be palpable it will cause searing pain to Americans when they purchase necessities. As the economy digests the FEDS higher interest rates and the FED's dialing back of interest rates the demand for gasoline, diesel and other oil and gas products will increase and because of the Democrat freeze on the Domestic fossil fuel industry and the market based pricing of these fuels which of course operate on the supply/demand curve and since supply will not be increasing these oil and gas products pricing will significantly increase and cause a significant increase in inflation hurting American families budgets. Sometimes in analyzing public policy problems commentators use metaphors to emphasize a point like "we have seen the enemy and it is 'us'" on this issue the following metaphor applies "we have seen the enemy and it is the extreme left wing Democrats in Washington that want to remove America from fossil fuel use even if it causes countless Americans severe truly severe pain!
