Posted on 10/03/2018 7:16:27 AM PDT by yesthatjallen
Federal Reserve Chairman Jerome Powell said this week that the combination of low inflation and low unemployment shows that the U.S. economy is in "extraordinary times."
“This historically rare pairing of steady, low inflation and very low unemployment is a testament to the fact we remain in extraordinary times,” Powell said in a speech Thursday. “I was asked at last week’s news conference whether these forecasts are too good to be true — a reasonable question.”
"From the standpoint of our dual mandate, this is a remarkably positive outlook," Powell said. "Since 1950, the U.S. economy has experienced periods of low, stable inflation and periods of very low unemployment, but never both for such an extended time as is seen in these forecasts."
The Fed projects that unemployment will remain below 4 percent through 2020 and that inflation will also stay low during that period. The jobless rate in August was 3.9 percent, according to the Labor Department.
then stop raising rates!
The Trump magic wand!
Although absolutely none of the corrupt MSM will acknowledge Trump’s winning.
I'm pretty sure voters didn't need a talking head to tell them this.
I worry about inflation though. Seems hard to believe that 25% tariffs, $15 hourly wages, 90 dollar oil, record high asset prices doesn’t result in some sort of wage-price spiral.
Trump’s fault.
Democrats will say "Since the great depression we've never had an economy where unemployment and inflation were both in the news as much as now. Why, this is the worst economy in 75 years!"
Little inflation?
Powell apparently does not do his own grocery shopping.
My typical weekly grocery bill is in the $80 range. Last spring it was in the $70 range. Last year it was in the $60 range.
I am awaiting a notice from my apartment leasing company on how much of an increase my rent will be for the next leasing period. The last 3 lease increases were $25, $25, and $35.
My last Social Security increase, less the Medicare Part B premium increase, was a net of $3.00 per month. I am waiting to hear what the Medicare increase will be for 2019. Social Security may be getting a 2% increase.
With the FED finally starting to raise interest rates, my savings have seen some modest movement upward. My moneymarket has increased to 1.85% and will probably increase to about 2.05% soon. [I used to think that 4% of 15 years ago was low. Now, I could be elated to be earning 4%.]
What city will dhimmicrats burn down over this
Yes, that tends to happen when gains are made from productivity NOT the printing press.
The $90 oil though is not being matched by commodity price increases, so I am not sure the price is justified. Especially not with oil production in the US breaking records.
I agree though. Even 2% inflation is never benign.
I live in Canada, but same principle. Inflation in food is incredibly high, even if they do fancy footwork with their numbers to make it look it isn’t so. Canadians, who at one time (1980s) were known for frugality, basically live their lives on debt. And don’t seem to care.
I actually did a spreadsheet on US prices. It shows bread, cars and apples outpacing wage increases from the 1970s. For instance in 1970 a car was 52% of annual income. Today it is 94%. Bread and apples have doubled.
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