A trio of Democrat Senators wrote Jerome Powell begging for a three-quarter point cut.
Letter to Powell
Here is the Letter to Powell from Sens. Elizabeth Warren (D-MA), John Hickenlooper (D-CO) and Sheldon Whitehouse (D-RI).
We write today to urge the Federal Reserve (Fed) to cut the federal funds rate, currently at a twodecade-high of 5.3 percent, by 75 basis points (bps) at the Federal Open Market Committee (FOMC) meeting on September 17 and 18, 2024. Given the Fed’s confidence in inflation moving towards its target of 2 percent and data indicating slower job growth, now is the time to swiftly move forward with rate cuts.
For months we have been calling upon you to cut the federal funds rate. As we wrote in June, the Fed’s elevated interest rates are not successfully addressing the remaining drivers of inflation, including housing costs—and might even be making them worse. We were encouraged to hear your remarks this past month when you acknowledged that “[t]he time has come for policy to adjust.” It is clearly the time for the Fed to cut rates.
In fact, it may be too late: your delays have threatened the economy and left the Fed behind the curve. Inflation has fallen to 2.5 percent, well below the mid-2022 peak of 7 percent and just above the Fed’s target of 2 percent. You have stated that the central bank is looking for “greater confidence” that inflation is moving to the 2 percent target, and it is clear that the inflation data is pointing in that direction.5 Indeed, one columnist warned investors to “adjust to the notion that inflation could soon undershoot the Federal Reserve’s 2% target.” At the same time, the unemployment rate has ticked up to 4.2 percent, from 3.5 percent in July 2023.7 In a Senate Banking, Housing, and Urban Affairs Committee hearing in July you noted that “[]in light of the progress we’ve made [] in lowering inflation…elevated inflation is not the only risk we face,” stating that cutting interest rates “too late or too little could unduly weaken economic activity and employment.” Employment numbers adjust slowly, so the Fed should frontload rate cuts to avoid sliding towards a potential crisis.
Last month you emphasized that the Fed “[does] not seek or welcome further cooling in labor market conditions,” but there is a real risk that that is happening.9 At the end of August 2024, the Bureau of Labor Statistics released their preliminary benchmark annual review of employment data, which revealed that there were 818,000 fewer jobs in the 12 months that ended in March of this year than were initially estimated. While these are not job losses, they do indicate that job growth has been much slower than the data previously indicated. Some conservative economists believe that job growth has been even weaker since then. The Economic Policy Institute (EPI) stated: “there is no reason why the Fed should be looking to generate a weaker labor market, but recent months have seen signs of a slight softening at the labor markets on the margin.” While the economy remains strong overall, this softening of the labor market offers further justification for lowering rates.
If the Fed is too cautious in cutting rates, it would needlessly risk our economy heading towards a recession. A number of economists have warned of this risk since July. Former president of the Federal Reserve Bank of New York, Bill Dudley, wrote, “dawdling now unnecessarily increases the risk.” The Committee must consider implementing rate cuts more aggressively upfront to mitigate potential risks to the labor market.
Thank you for your attention to this matter.
No Case, No Case, No Case
- There is no legitimate case for a three-quarter point cut.
- There is no case for political meddling with the Fed.
- There is no legitimate case for the Fed at all.
However, the one thing worse than the Fed would be to put Congress in control of money supply and interest rates.
This is why it was ridiculous for Trump to claim he could do a better job than the Fed.
When Trump made that statement I warned Democrats would do the same. Today they just did.
What’s Warren’s Angle?
- Help Kamala Harris
- Ask for 75 basis points to make 50 basis points look like the middle ground.
Understanding the Dual Mandate
July 31: Fed is Attentive to the Risks to Both Sides of its Dual Mandate
The Fed is concerned about inflation and jobs. It’s the latter that will be the bigger problem in the near-term.
August 23: Fed Does Not Seek or Welcome Further Labor Market Cooling
The market is cheering the Jerome Powell’s self congratulatory and market friendly speech at Jackson Hole. “Your mileage may vary,” said Powell. Indeed.
Undoubtedly, “Your mileage may vary,” is the most accurate thing Powell said today.
Two Fed studies have debunked the myth of inflation expectations, and so does common sense. ….
September 6: Payroll Report: Manufacturing Sheds 24,000 Jobs, Government Adds 24,000, Big Negative Revisions
Full Time Employment is -1,021,000 from a year ago!
Suddenly, there’s a 59 Percent Chance of Half-Point Interest Rate Cut by the Fed
This morning, I noted Suddenly, there’s a 59 Percent Chance of Half-Point Interest Rate Cut by the Fed
Reflections on the Fed’s Dual Mandate
I do not believe there should be a dual mandate.
Heck, I don’t think there should be a Fed. Nor do I think a goal of 2 percent inflation is a good idea, even if accurately measured.
But I didn’t create the mandate, Congress did. And that mandate gives the Fed cover to do whatever it wants.
A month ago I predicted a 50 basis point cut this month. Many people thought I was crazy.
Bear in mind that a prediction does not indicate support for the policy. It’s only a reflection of what I think is likely.
To understand the problem with big rate cuts, look ahead.
Looking Ahead
Deficits are massive, tariff hikes are inflationary, just-in-time manufacturing has been replaced by just-in-case stockpiling, demographics put upward pressure on wages while dramatically increasing the need for Medicare, and both Trump and Biden want more production in the US.
Every point in the above paragraph is inflationary.
Underlying inflation pressures are huge. Given neither party’s willingness to do anything to fix out of control spending, it’s the recent decline in the rate of inflation that’s transitory, not the increase in inflation.
I’m all for 3/4 point INCREASE in rates
need to suppress run away inflation
Here’s one for Flavia & Hooker who seem to think China working on a race / ethnic targeting bioweapon is looney tunes. It took all of 5 seconds to find on resultshunter.com, 5th article down from the top.
The Coming Threat of a Genetically-Engineered ‘Ethnic Bioweapon’ | National Review
Fake Indian, real pendejo.
Why would she or anyone feel like they should or would have any influence over the Fed doing exactly what it has planned to do ?- The rich have been waiting patiently for 15 years now to buy the rest of America from us as it crashes from the mother of all bubbles- AMD at 11X sales etc etc..why would lizzie interupt such treasonous activities- lol-enjoy the distractions 🙂
The problem is not interest rates, it is the federal debt and lack of any determination to bring down the annual deficit let alone the debt. Pocahontas, who has been complicit in creating and exacerbating the problem, now wants to be relieved of prudent decision making as the government cannot continue to spend at current levels nor can it afford the debt service at current rates. Lowering rates only encourages more bad poor decision making by congress that is going to result in higher inflation, higher debt and debt service, and higher not lower interest rates eventually, as the bond vigilantes are not going to buy bonds at rates lower than their principle loses purchasing power. Tomorrow’s rate decision is noise in the bigger scheme of things and will get way more undeserving coverage of near term meaningless ‘news’ than the longer-term economic downward spiral that should be front and center in the news.
Atlanta Fed GDPNow projection at 3% for Q3. We’re going to need to cut rates by at least 10% to -4.5% with such a dismal showing. The Fed and Congress are packed full of very stable geniuses.
Mish wrote “Every point in the above paragraph is inflationary.
Underlying inflation pressures are huge. Given neither party’s willingness to do anything to fix out of control spending, it’s the recent decline in the rate of inflation that’s transitory, not the increase in inflation.”
The language is too mild. The effect of inflation is to impoverish each of us, to decrease our means to sustain our standard of living, to lower our standard of living.
It is worthwhile here to recall French economist Richard Cantillon, who observed that the effects of inflation don’t fall on everyone evenly. Those who get first access to the (government) money do rather well. The people who cause it intend to redistribute spending in society. They say it is to redistribute from those who have to those in need. That is *not* how it typically works, with the benefit typically going to themselves and their best friends.
At the same time, we really ought to ask how “lower interest rates” fix recessions and promote prosperity. I say that facetiously. Do lower interest rates really fix all our economic problems? (like Turkish president Erdogan says it will)
get ready for another bout of inflation. The question is, do we see that trickle into re-industrialization/real wage growth or do we continue to see the top 1% suck it all up in the form of pure asset appreciation.
The S&P 500 hit an all-time high this morning.
There is your answer.
Record US household wealth may increase chance of soft landinghttps://www.reuters.com/markets/us/record-us-household-wealth-may-increase-chance-soft-landing-mcgeever-2024-09-16/
Well, if I were $35 Trillion in debt and adding another $Trillion every 6 months……
I say no cut at all.
Inflation hurts the average Joe, not the bureaucrats. Higher rates blows up the Govt/debt.
As if we needed any more evidence Warren is an idiot. How these clowns continue to get reelected is beyond me. Dearth of choice maybe?
The effect of the FED’s operations on interest rates (now largely via the remuneration rate), is indirect, varies widely over time, and in magnitude. What the net expansion of money will be, as a consequence of a given injection of additional reserves, nobody knows until long after the fact.
The consequence is a delayed, remote, and approximate control over the lending and money-creating capacity of the payment’s system.
Commercial bank credit (loans=deposits) will point the way.
https://fred.stlouisfed.org/series/TOTBKCR
“Heck, I don’t think there should be a Fed. Nor do I think a goal of 2 percent inflation is a good idea, even if accurately measured.
But I didn’t create the mandate, Congress did.”
This post on a CFR site declares the whole nutty 2% idea was a Kiwi creation that was eventually adopted by Bernanke in 2012.
https://www.cfr.org/blog/history-and-future-federal-reserves-2-percent-target-rate-inflation-0
“The 2 percent target was officially adopted in January 2012 under the leadership of then- Chair Ben Bernanke.”
Did Warren ever ask for a 3/4 point rate increase as inflation shot upward? Her request is political, not economic.
Every time I saw she opposed an increase in the interest rate. At first she was saying it was because the inflation wasn’t caused by easy money and wouldn’t get fixed by tightening rates.
All those people ready to short USD because you know, Elizabeth Warren and Wall street demand a 75-50 basis cut.
Well um not in the cards from this mornings Retail spending.
Powell may have another reason that will appear at the presser but it is not going to come from Data.
Kamala Harris helped shut down Backpage.com. Sex workers are still feeling the fallout.https://www.politico.com/news/2024/09/15/kamala-harris-prostitution-crackdown-00177298
On Sept 5 1975 Squeaky Fromme, a Manson member, tried to assassinate president
Ford in Sacramento CA. Eighteen days later, on Sept 22, Sara Jane Moore tried to assassinate the president in SF CA.
BushCo.
It’s all about power. If Trump defeats Harris will it start a civil war to protect our
democracy ?
Let me know when you track down the Democracy and let us know where it is.
cloistered by a constitutional republic
you’re the tp hoarder at costco. admit it.
will Dick Cheney be SEC OF WAR for Harris administration? who can sell WMD to UN ? obama? slick willie? the FED will have to go back to ZIRP and free yang gang stipends for us all like the trillions of PPP etc…….under Rump and Genocide JOE. i can hardly wait.
Too bad Don Rumsfeld is gone.
Now there was a Government servant that understood deficits.
The fifth hole is 300/500 yards away from the fence. The sixth hole is 20/200 yards away. The secret service stopped a second assassination attempt in 60 days.
Ford had 2 attempts on his life in i believe 22 days. 2024 does seem like a combination rerun of the 1970s and dare i say 1850s. buckle up ladies and gentlemen, the road to ruin will be a long ride down the mountain of debt……
The right may fail to bring back slavery though.
In the early hours of the morning S&P 500 E mini jumped, but it’s still under July high.
ES is in a long-term Long, and I know the ranges, and have been following it since $2174.
Crack addicts in withdrawal. They need those low rates that destroy savers. BTW, the Fed only controls short-term rates. And Congress is in control of the long term. More debt means higher rates, especially if markets slow down when buying long US bonds. Congress creates our problems. If they could balance budgets and start reducing debts, they could decrease longer-term interest.
Can you print Senator Warren’s letter to the Fed, cosponsored/cosigned by 2 other complicit boobs, when inflation raged on at insane rates for months and months while Powell said it was “transitory”? Yeah, that’s right, that’s in the “never happened” category.
Inflation impacts everyone, job loss impacts those that lose a job and knock on impacts to the economy. I guess she only cares because it’s September 2024, a Presidential election year, and as a sidenote none of those 3 are up for re-election. But now that prices are nearly double all over the place and have, for the moment, stabilized back at the still-rising-but-more-slowly level, she’ll put pen to paper and ask for action. Her timing is like 60 Minutes, the assassinations, the lawfare, the sudden reversals on 4 years of bad policy and taking up the oppositions’ ideas….election interference
I see UST have fully priced in a 50bps cut because the economy is healthy.
we live in interesting times
50bps cut would be an admission that the economy is UN-healthy. They won’t do it.
And when the recession arrives, she’s going to tell Congress to:
Give every person no matter their age or legal status living in the USA $1,000 a week for 12 months.Suspend mortgage & rent payments and cancel $1.6T in student loan debt.Give Ukraine $1T to finish the job against Putin.Appoint her the disinformation queen.Tell the FBI to arrest Trump for trying to get himself assassinated twice and other crimes against humanity.Give everyone a Unicorn for their birthday.
the 2020 to 2021 free money doled out by trump and biden were great times in modern amerika………..can we all stay home in our PJ’s too?
Yes you can, and the money Trump doled out was in response to a pandemic the likes of which we haven’t seen in 100 years that killed 100M people around the world. And it was successfully used to push him out of office, and as we all know now, it was created by the CCP. All of that is fact, and I can accept with reasonable probability that the CCP did it intentionally for a variety of reasons as a test run for something much larger.
Word on the street is they’re working on biotech that targets specific races.
At least it wasn’t the flu!
Specific races?
I, for one, am willing to see the Boston Marathon go.
OMG! Hooker, you’re so funny.
You can’t believe everything you read on the internet.
Right! And five years ago, nobody thought China was trying to create a super corona virus using bats. But they did, and we helped pay for it.
If anyone thinks for a moment that China isn’t working on all sorts of crazy mass death viruses, then you certainly need to get your head out of the sand.
And for all we know, the US is doing the exact same thing.
Many countries are involved in many things. Most of which we will never be made aware of.
I was certainly not expecting to hear that Israel managed to find a way to supply their enemies with pagers that could be exploded remotely all at once. Eight dead and 2700 injured apparently. One would also conclude that they could track their movement and communications as well.
Not to mention planting explosives inside Iran months in advance in order to kill a Hamas leader when visiting.
I imagine that there’s much more to come as long as this conflict continues.
This one is the same calibre as stuxnet, very sophisticated.
FYI: you can’t track a pager, communication is unidirectional.
More to come as opportunities present.
Much more to come from both sides.
– A trio of Democrat Senators wrote Jerome Powell begging for a three-quarter point cut.
> Looks like that confirms my .50BP now, and .50BP in Early October. Typical Playbook of “Ask for more than you want” and then “Settle for what you really wanted” Then a bit later ask for “What you did last time” and then “Settle for what you did last time” And that’s How you get what you Really Wanted again (1BP) and when you Needed it most.
Of course if they lose the Election, it will assist the other party to a much stronger start which will not look good at all. Risk Without Choice, Often Leads to Failure, JS
– Given the Fed’s confidence now is the time to swiftly move forward with rate cuts.
> Of course it is, the longer they wait, the worse it will get. Then it comes off of the table for Powell, or at least what they want and need.
– There is no legitimate case for a three-quarter point cut. > Keyword: Legitimate
– There is no case for political meddling with the Fed. > Yes, it’s called Re-Election
– There is no legitimate case for the Fed at all. > Keyword: Legitimate
– However, the one thing worse than the Fed would be to put Congress in control of money supply and interest rates.This is why it was ridiculous for Trump to claim he could do a better job than the Fed.When Trump made that statement I warned Democrats would do the same. Today they just did.
> Excellent Call by the way! I do think it may have strong potential to backfire on them.
What’s Warren’s Angle? (She is sort of irrelevant now isn’t she?)
– Help Kamala Harris > Absolutely
– Ask for 75 basis points to make 50 basis points look like the middle ground. > Absolutely
– Reflections on the Fed’s Dual Mandate: And that mandate gives the Fed cover to do whatever it wants. > Been a huge problem for awhile now.
– A month ago I predicted a 50 basis point cut this month. Many people thought I was crazy. > Not me and I am now calling for another 50 in early October, as a distinct possibility!!
– Bear in mind that a prediction does not indicate support for the policy. It’s only a reflection of what I think is likely. > Good point, and I agree with you.
Looking Ahead:
– Deficits are massive > Enough Said!
The Congress would not need to control interest rates along with money.
If Congress would print money with wild abandon, interest rates would simply care of themselves. MMT (More Money Today.)
Election interference
win cheat steal OR shoot your way to power has always been an arrow in mankind’s quiver. the history books are littered with examples like this way way before slipping jimmy, aka don trump from queens cult leader.
These imbeciles voted for the money from heaven stimunculus bills. (Rolling eyes.)
There are no good guys in this entire article. Just bad actors in DC deflecting and blaming others for the very problems they created and are responsible for.
There are many flaws in the measurement of inflation.
There is nothing sacrosanct about the 2 percent target.
The election is in just 50 days. Think about that. There is a pretty long lag between a cut in the Fed Funds rate and the impact on “Main Street,” which is what most voters care about. That lag is much longer than 50 days. Of course, the impact on Wall Street and the financial markets is immediate.
If Mish is right — that we are in a recession now — this letter to Powell is obviously way too late to make a difference politically in November. But it is a sign that maybe the economy is in worse shape than most of us think. I.e. Mish may be right.
It will only take a weak economy — not necessarily a recession — for Trump to win in November. So far, the rather weak employment numbers are not good news for Democrats, which is why Warren’s letter might be a canary in the coal mine.
Contrarian here. They need the rate cut for the election. The rate would have been a lot higher this year, if not for the election. After the election, the Fed will have no choice but to raise the rate again. Perhaps significantly.
Stocks, bitcoin, houses, CRE, all priced in the from very high to stratosphere. Something’s gotta give as everyone is tapped out. When that something gives, rate cuts will come in fast and furious.
Yes, it’s called a classic recession. That’s what’s gotta give.
To-date, CRE has been a MASSIVE nothingbuger. So some properties have gone into foreclosure, no worries, but most owners have struck deals with lenders that push the can down the road.
yup. like the 70s. we will have another pop in inflation, due to election monetary easing to keep slipping jimmy, aka trump out of power. then it’s gonna have to be time to invoke the ghost of volcker………
The real question is how long will a fed cut take to stoke inflation? A month? a quarter? Longer? A 75 basis cut will make the money train and inflation move a lot faster.
My TLT and other bond investments are up 16% or more and I will unload high then buy back low again. Rinse and repeat for more profits.
Can’t wait for Wednesday’s fed meeting, giddy with excitement. All aboard!
Mish,
Federal Gov’t. Spending, has always been debated. Over the last 60+ years the pathetic zero term limits Congress’ abusive and unaccountable, unproductive, politically-driven and irresposible, moronistic-capital allocation record on behalf of U.S. taxpayers has only gotten worse.
You address “spending”, but I would start with the predicate, it is the Quantity of Money in Circulation (QMC). 100% debt-financed at that! Sequentially abusive annual Federal Spending cannot happen IF QMC is not made available through Congress. These public sevants behave like THEY own OUR government.
Brian Wesbury of First Trust, today articulated this point exactly:
https://www.ftportfolios.com/Commentary/EconomicResearch/2024/9/16/its-money,-not-spending,-that-causes-inflation
Stay with the truth, Mish!
Glenn
These inveterate inflationists are hoping the fed can generate another tsunami of inflation before the depression that it causes takes over completely.
The labor force, including the black market, expand. It’s takes longer to find a job. If the tax rates will be cut, including on the rich, everybody will benefit. Even before our new factories will be ready demand for highly skilled workers will rise. Highly skilled workers from overseas will train workers in the US. If the Fed cut rates the economy will grow, surfing on negative rates etc, etc
Everyone won’t benefit. Those who have assets and CD’s will get lower rates.
“As we wrote in June, the Fed’s elevated interest rates are not successfully addressing the remaining drivers of inflation, including housing costs—and might even be making them worse.”
It always seemed ironic to see progressive politicians advocating for easier monetary policy from the Fed. They constantly talk about (and rightly so) the system being “rigged” and how it crushes the working class and little guy while favoring the rich.
Yet, they seem completely unaware that it was the exceptionally easy monetary policies that caused so many of the less affluent to fall further behind because of inflation and housing unaffordability.
It was the wild money printing and zero-percent interest rates that ignited a stampede of investors to rampage through the housing market causing the price melt up.
Maybe the politicians should have written a letter to the Fed asking them to shut down the printing press, get off the zero bound and stop buying $30B of MBS per month while housing prices were skyrocketing.
Better late than never. Interest rates were low before the pandemic (2009 – 2020), and housing prices didn’t skyrocket. Now though, higher interest rates just make one of the last bastions of inflation stick around. Most other commodities (oil, nat gas, lumber, foodstuff (wheat, corn, etc) have already fallen back to close to pre-pandemic prices), now if lower interest rates can get the cost of monthly payments down, that will be the last step of this post-pandemic episode. Supply chain issues are mostly solved/regenerated. This is the last step. That being said, I’m fine with 25 basis points at a time going forward, getting the fed funds back towards the 3.5 range over the next 9-12 months.
The idea that high interest rates cause inflation is quite Erdogan chic if I do say so myself.
Do higher rates make things more expensive?
From 2000 to 2020 housing compounded by more than 3.8% per year according to Case Shiller which is fairly significant. And it was the combination of the huge growth in money supply along with the low interest rate levels that was the major factor in creating the recent inflationary storm.
There is a whopping $6.3T of cash sitting in MM funds. The more they cut rates, the more bidding pressure there will potentially be for the asset markets from that mountain of cash. Although, some of the rate cuts may already be priced in and then some.
Nobody can predict what is going to happen but they should have never blown out the money supply and held rates at zero for such a long period of time.
Thank you.
3.8 percent in housing is pretty normal. Go from the 1960’s to 2000, and I imagine the number would be in the same neighborhood. Some say, “What? My house is only going to appreciate at 3.5 to 4.0 percent? I can get a better rate with a bond!” But, you can’t live in a bond for 20 years, haha.
Fed Funds rates were below 1 percent from 2008 through 2017 and we did not have an “inflationary storm”. It was only after the pandemic screwed up supply chains and “just in time” delivery, that inflation reared its head, and that now has passed with most commodity inputs having returned very close to pre-pandemic levels, which will slowly work it’s way into final prices.
When they begin to lower rates (hopefully NOT too fast), the housing market will begin to “unlock” as more sellers will be willing to give up their current low mortgages, for ones that are “not so much higher”. And, when housing get’s unlocked, that is a great driver for overall economic growth.
There is no reason to rush back down to zero at all. But, a slow, steady easing of interest rates might be just the thing to bring that “soft landing” that everyone wants.
Older homeowners who have no mortgages – they care not about rates. However, they do not want to see house prices decrease.
And the fed and powell aren’t “political?
“But I didn’t create the mandate, Congress did. And that mandate gives the Fed cover to do whatever it wants”.
But but but…the FEDs statuatory target is zero.
12 USC 225
More firewater for Liz please
Hell, why not just make it a 2% cut? Acording to her reasoning in the letter, they should just cut it by 3% and be done with it!
Yes, and unfortunately we have Trump on the “other” side who will be pushing for rates at zero , or negative, as he has done in the past! Financial illiterates, all of them!!!
The Fed rate never got above the rate of inflation this cycle; therefore, the FED was stimulating the economy. There is a lot of money sloshing that needs to be mopped up, which means FED rates need to remain higher than inflation until the US dollar returns to its purchasing power of at least 50 years ago.
Wow, talk about balls! Gee, who started the inflation spiral by printing money unbacked by reality?
She should have thought about the Fed printing money to cover for HER profligacy before she approved the money-spigot.
After I read the other 3 responses, we all seem to agree on who the stupid one is.
Congress has always been in charge of the Fed. Without an act of congress the Fed would not exist. Without the massive deficit spending approved by congress the Fed would have had no treasuries to monetize. Without the implicit backing of congress, the Fed wouldn’t have been able to buy MBS. It was an act of congress that reduced reserve requirements to 0. It is and continues to be congress that enables the Fed to do all of the awful things it does and it does it in the name of congress.
Ah, no it’s the opposite. The Fed (i.e. Wall Street) controls Congress. Come on, everyone knows this.
Ah, yes, because the Fed loves backstopping huge congressional deficit spending. Because the Fed member banks love 0% interest. They love having to own billions of dollars of low return treasuries. They love making bad loans. Clearly congress’s profligate spending lines up with Wall street’s goals of going bankrupt and not the other way around.
‘Responsible for’ is not the same as ‘in charge of’. Congress circa 1913 (and the years leading up to that time) is responsible for the fed, Congress today is certainly not in charge of the fed.
I hope they ask Powell about this letter in the press conference. As much as I think the Fed is late, this is nothing but polictical grand standing and Powell should be able to comment about this obvious pandering.
Its like The Three Stooges conducting monetary policy. Ok, to be fair Monetary Policy is already a Charlie Chaplin movie. But those three …
Keystone Cops would be more apropos.