In a news conference following last Wednesday's FOMC meeting, Fed Chair Jerome Powell inadvertently admitted "Inflation is half our mandate."
He quickly corrected that to "Price stability is half our mandate."
The second statement is factually correct but in practice the Fed follows Powell's first statement.
The Fed wants anything but price stability. Here's the clip.
Other Inflation Quotes of the Day
John Mauldin compiled an interesting set of quotes in his missive last Friday: Policy Errors Have Consequences.
- “T.S. Eliot once wrote, ‘Only those who risk going too far can possibly find out how far one can go.’ It seems the US financial system is bound and determined to find out.” John Hussman, July 29, 2021
- “If I was Darth Vader and I wanted to destroy the US economy, I would do aggressive spending in the middle of an already hot economy… What are you going to get out of this? You’re going to get a sugar high, the higher inflation, then an economic bust.” —Stanley Druckenmiller, July 23, 2021
- “It’s not riding the tiger that is the problem, it’s the dismount.” John Mauldin, July 30, 2021
Mish's Observations On Prices
- "The Fed's preferred measure of inflation is nearly as consistent as the returns of Bernie Madoff." Mish, August 2, 2021
- "Excluding everything that matters, prices are falling."TM Mish, August 2, 2021
Measures of Inflation
Fed's Preferred Measure of Inflation
- For discussion of my observations and various measures of inflation please see Fed's Preferred Measure of Inflation is Only 4.0%, Anyone Believe That?
- For further discussion of the FOMC news conference, please see Fed Admits Inflation Might be Higher and More Persistent Than They Expect
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