Chairman Powell Don't Be So Politically Correct!

JimofPennsylvan

Platinum Member
Jun 6, 2007
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I watched some of the Senate hearings today involving FED Chair Jay Powell. Overall, I think he is doing an outstanding job he has the wisdom to recognize that lowering and stabilizing the inflation rate in the two to three percent range is critical for the long-term health of America's economy and he is following the only path available to achieve this in raising the Fed Funds interest rate even though such FED actions aren't popular in powerful quarters of the country! But I think he fails to do the optimum job of leader of America's Central Bank when he appears before Congress and he is nonchalant and ambivalent about the price of oil and gas he says things like the price goes up and it goes down that is the history of these commodities in America and it doesn't impact core inflation which is what I am concerned about in my responsibility to lower inflation. I think a Fed Chair that was doing an optimal job would say on this issue the Congress and the President are not optimally safeguarding the economy with the current state of affairs where Washington has instead of being a supporter of the fossil fuel industry is an obstructionist of the industry one part of the problem with the current state of affairs is yes the price of oil falls below eighty dollars of barrel which is close to the top of a good range but the king kong size problem is that users of these commodities know that Domestic production is under stress Washington isn't doing what it can to make America energy independent so the current price of oil and gas even though today it may be okay once this high interest rate period ends and it will end oil and gas demand will increase and since domestic supply is restrained the price of oil and gas is going to increase big time so I as a producer shouldn't be trying to lower prices from their skyrocketing increases since before the pandemic and I shouldn't be trying to unduly curtail the cycle of increases my industry is experiencing because in the future oil and natural gas sellers are going to really stick it to me. Further, Washington needs to implement policy making America energy independent and take OPEC out of the driver seat on energy prices because although energy prices don't directly affect core inflation when American workers are getting walloped at the grocery store, drug store and the pump they are going to pressure their employer to increase their wages which undermines the FED's effort to lower inflation by increasing the ratio of available workers for each open job which is supposed to lower the increase of wage expense on employers and thus lower inflation because employers/producers pass on this expense to consumers!

The other area where I think the Fed Chair is missing a critical opportunity to protect America's economy is in talking about the House Republicans playing chicken about raising the debt ceiling and avoiding the Federal government defaulting on it's Treasury bonds! These are dangerous times for America, America needs more than the Fed Chair saying Congress always raises it so it will get raised this time, next question! Chairman Powell should factor in the spectacle of how the Republicans elected the Speaker of the House this year; collectively the House Republicans caucus are a bunch of wackos that cannot be trusted to protect the American economy from being collapsed by Washington's behavior! Chairman Powell is an outstandingly knowledgeable and capable economist and central banker he should be specific about what will transpire here with the Republican not raising the debt ceiling. He should be as specific as specific can be, spell it out for the American people let everyone know what is coming down the pike with this House Republican agenda. Chairman Powell should begin like such if Congress doesn't raise the debt ceiling the Treasury Dept will be in a situation where they have to time taking incoming tax revenue and using that money to pay not only Treasury bonds, Social Security payments, federal payroll, etc.. eventually they will fail in this logistics endeavor and the Treasury will fail to pay the principal and interest on a Treasury bond when it comes due. This will shake the confidence of Treasury bond investors who largely invest in such bonds for the stability of investments thus the Treasury Bond market will see a dramatic increase of sellers of the bonds which will drive down prices. This technical default on a bond payment by the Treasury Dept will likely cause credit rating agencies to lower the AAA credit rating on Treasury securities which by contracts and written obligations cause a massive selling of Treasury securities which will lower Treasury bond prices which cause the commercial bond markets to dramatically drop in prices which will dramatically raise interest rates across America's economy which will dramatically hurt America's businesses and corporations across the board resulting in America facing a 2008/2009 Great Recession level of crisis!
 
I watched some of the Senate hearings today involving FED Chair Jay Powell. Overall, I think he is doing an outstanding job he has the wisdom to recognize that lowering and stabilizing the inflation rate in the two to three percent range is critical for the long-term health of America's economy and he is following the only path available to achieve this in raising the Fed Funds interest rate even though such FED actions aren't popular in powerful quarters of the country! But I think he fails to do the optimum job of leader of America's Central Bank when he appears before Congress and he is nonchalant and ambivalent about the price of oil and gas he says things like the price goes up and it goes down that is the history of these commodities in America and it doesn't impact core inflation which is what I am concerned about in my responsibility to lower inflation. I think a Fed Chair that was doing an optimal job would say on this issue the Congress and the President are not optimally safeguarding the economy with the current state of affairs where Washington has instead of being a supporter of the fossil fuel industry is an obstructionist of the industry one part of the problem with the current state of affairs is yes the price of oil falls below eighty dollars of barrel which is close to the top of a good range but the king kong size problem is that users of these commodities know that Domestic production is under stress Washington isn't doing what it can to make America energy independent so the current price of oil and gas even though today it may be okay once this high interest rate period ends and it will end oil and gas demand will increase and since domestic supply is restrained the price of oil and gas is going to increase big time so I as a producer shouldn't be trying to lower prices from their skyrocketing increases since before the pandemic and I shouldn't be trying to unduly curtail the cycle of increases my industry is experiencing because in the future oil and natural gas sellers are going to really stick it to me. Further, Washington needs to implement policy making America energy independent and take OPEC out of the driver seat on energy prices because although energy prices don't directly affect core inflation when American workers are getting walloped at the grocery store, drug store and the pump they are going to pressure their employer to increase their wages which undermines the FED's effort to lower inflation by increasing the ratio of available workers for each open job which is supposed to lower the increase of wage expense on employers and thus lower inflation because employers/producers pass on this expense to consumers!

The other area where I think the Fed Chair is missing a critical opportunity to protect America's economy is in talking about the House Republicans playing chicken about raising the debt ceiling and avoiding the Federal government defaulting on it's Treasury bonds! These are dangerous times for America, America needs more than the Fed Chair saying Congress always raises it so it will get raised this time, next question! Chairman Powell should factor in the spectacle of how the Republicans elected the Speaker of the House this year; collectively the House Republicans caucus are a bunch of wackos that cannot be trusted to protect the American economy from being collapsed by Washington's behavior! Chairman Powell is an outstandingly knowledgeable and capable economist and central banker he should be specific about what will transpire here with the Republican not raising the debt ceiling. He should be as specific as specific can be, spell it out for the American people let everyone know what is coming down the pike with this House Republican agenda. Chairman Powell should begin like such if Congress doesn't raise the debt ceiling the Treasury Dept will be in a situation where they have to time taking incoming tax revenue and using that money to pay not only Treasury bonds, Social Security payments, federal payroll, etc.. eventually they will fail in this logistics endeavor and the Treasury will fail to pay the principal and interest on a Treasury bond when it comes due. This will shake the confidence of Treasury bond investors who largely invest in such bonds for the stability of investments thus the Treasury Bond market will see a dramatic increase of sellers of the bonds which will drive down prices. This technical default on a bond payment by the Treasury Dept will likely cause credit rating agencies to lower the AAA credit rating on Treasury securities which by contracts and written obligations cause a massive selling of Treasury securities which will lower Treasury bond prices which cause the commercial bond markets to dramatically drop in prices which will dramatically raise interest rates across America's economy which will dramatically hurt America's businesses and corporations across the board resulting in America facing a 2008/2009 Great Recession level of crisis!
Needs shorter sentences and more paragraphs.
 

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