Powell signals Fed will soon cut back on stimulus

The Hill ^ | 08/27/2021 | Sylvan Lane

[ChicagoConservative27]

Federal Reserve Chair Jerome Powell said Friday that inflation has risen enough to warrant a reduction in the central bank’s support for the recovering economy, potentially by the end of the year.

In a Friday virtual speech, Powell said that the rate of price increases had achieved the “substantial further progress” necessary for the Fed to begin reducing its $120 billion in monthly bond purchases, and he expects the labor market to strengthen to that point as well soon.

“At the FOMC's recent July meeting, I was of the view, as were most participants, that if the economy evolved broadly as anticipated, it could be appropriate to start reducing the pace of asset purchases this year,” Powell said, referring to the Federal Open Market Committee — the Fed’s monetary policy arm.

[ChicagoConservative27]

HAHAHA yeah right. Good one!

[ryderann]

Back during the early part of this year I received a letter from Joe saying I would be receiving a $600 stimulus check shortly. I never got it. Did this happen to anyone else? Will the IRS be holding us to it on our 1040?

[Leep]

Does the signal involve the middle finger to honest working Americans and their grand children?

[ClearCase_guy]

I’m no economist, but I think the message is:

They were trying to help the economy recover.
They were hoping to cause inflation, because that’s always good for the economy.
They have successfully caused quite a bit of inflation.
They are now prepared to reduce their efforts to provide this sort of help.

[9YearLurker]

40% annual inflation in food costs good enough for you, serfs?

[Oatka]

I’m no economist, but I think the message is:
They were trying to help the economy recover.
They were hoping to cause inflation, because that’s always good for the economy.
They have successfully caused quite a bit of inflation.
They are now prepared to reduce their efforts to provide this sort of help.

In other words, "We're from the government and we're here to help."

[ArcadeQuarters]

Higher bills are really improving my standard of living. This Powell guy is a genius!

[glorgau]

Soon, real soon now.

[DUMBGRUNT]

—” I never got it.”

Same here.

A call to the IRS, “THOUGHT”, it was considered additional withholding???

[Organic Panic]

Paying more for the same stuff is just like being richer and having more expensive stuff to buy without the inconvenience. It’s been great. Gasoline only up $1.50 a gallon here now. It’s like I’m driving a Hummer.