Powell Before Congress Is Bizarro World
It is difficult to watch Powell speak before Congress when Powell refuses to be honest about the Fed’s inflating the money supply as the cause for the price increases the U.S. economy has suffered since 2021. Powell still blames “the pandemic” for elevated prices.
Truth: The truth of course is that the Fed has run expansionary monetary policy since 2009 and put that expansion in overdrive beginning in February 2020 when the Fed grew the money supply as measured by M1 and M2 by 420% and 41% respectively.
Treasury: The Fed of course has a partner in crime, that being Congress and Treasury. Both Powell and Yellen are incompetent.
Treasury Market: If the Fed and Treasury fail to install serious people in leadership positions that will reel in fiscal spending and expansionary monetary policy, then the Treasury market will impose austerity on Congress, Treasury and the Fed as Treasury investors will demand significantly higher yields on longer maturity Treasuries to compensate for inflationary monetary policy.
Is it worth analyzing a pack of lies? We may or may not do a point-by-point critique of Powell’s testimony later today. If so, it will be a premium article.
