Fed Chair Powell Isn't The Problem!

[JimofPennsylvan]

It is really upsetting to hear an abundance of media commentators on the economy beat up on Federal Reserve Board Chairman Jay Powell; saying things like he is the dovish Fed Chair ever implying gross negligence on Chairmen's Powell part of alarming proportions. The Fed Chair isn't the problem the state of our economy is the problem; although many measuring standards of the economy are doing well everyone needs to get what the Federal Reserve Board members know quite well but may not want to shine a spotlight on is that the underlying strength of our economy isn't that great and hasn't been since the Great Recession decimated our economy. Everyone really needs to focus on the following facts that are really telling about the American economy back in 2008/2009 the then current Fed Chair Ben Bernanke because he had no choice because the country was on a trajectory for a depression brought interest rates to historic lows and dramatically increased the money supply through bond purchases. Bernanke successor Janet Yellin essentially kept the same policy in place and these accommodative policies enabled the country to limp back to a relatively good place like full employment and two percent per year GDP growth. But this is the key point when Yellin's successor Jay Powell tried to do the responsible thing and tried to wean the U.S. economy off abnormally low interest rates and robust bond buying by the Fed the economy went into convulsions with America's executives fearing recession and the financial markets precipitously dropping, the lesson being that our economy is not that strong we lost a lot of great businesses and a lot of great jobs and they weren't made up for! Today, it is the same situation America's businesses are not as strong as they were pre the Great Recession, a lot of businesses are leveraged up to their chest level and higher America lost a lot of good paying jobs with the Pandemic and they haven't been replaced. Ya today many asset prices are super high and many consumers have fat wallets that create a bullish mood in the country but that mood could change like the seasons if interest rates start significantly increasing and the American consumer and the American corporation have to shell out significantly more money to pay their debt load! When that sentiment turns negative the negative economic domino effect will decimate the American people.

Maybe Fed Chair Jay Powell is the dovish Fed Chair ever but unfortunately America currently needs the dovish Fed Chair ever! And the other thing is so many public commentators go into panic attacks about the country's fiscal and monetary stimulus on the economy and how it may bring noteworthy inflation in America; these commentators need to go find a thinking cap because significant inflation that is not out of control would be helpful to America considering her 28 trillion dollar national debt and a Political Party in power that doesn't appreciate the moral irresponsibility and economic danger in deficit spending; inflation will ultimately bring in more tax revenue which will help America pay the interest expense on the national debt. To those that care the merits of the issue really indicate that America and other net importing countries needs to slowly expand their manufacturing base and put up protection barriers to permanently protect this vital part of their economy which creates good paying jobs and good tax revenue but no one should hold their breath for this to happen because the world doesn't have the high quality and courageous leaders to make this needed reality happen!