AuthorTopic: Biggest Lie of the Week  (Read 86 times)

Online Eddie

  • Global Moderator
  • Master Chef
  • *****
  • Posts: 19376
    • View Profile
Biggest Lie of the Week
« on: May 30, 2020, 01:35:19 PM »
So now we have Jerome Powell trying to say that Fed policy is for the little guy, and it doesn't lead to inequality. The sad thing is that I think Powell believes what he's saying,

I think that he and the Fed governors were once again trying to stick save the dying world global economy.....and maybe for many of the right reasons.....but it just turned into another clusterfuck with the rich profiting and only crumbs being thrown to anybody else. 

I blame not just the Fed.....but the big US banks they represent, who fell all over themselves to send the spoils of QE to their corporate clients at the expense of small business.....and Con-gress, that voted to give their corporate masters every break they'd been asking fo for three years.....the whole wish list......under cover of "saving the economy" which was a tragic screw-job on working people in America.

And....the primary beneficiary of the trillions added to the debt in the last two months is of course the stock and bond markets....more especially the junk bond market, than was starting to smell like last week's mackerel left in the dumpster. This is where the real inequality is....and it's hard to believe a smart guy like Powell is completely oblivious to that.


Powell Says Fed Policies ‘Absolutely’ Don’t Add to Inequality

Christopher Condon and Catarina Saraiva
BloombergMay 29, 2020
Powell Says Fed Policies ‘Absolutely’ Don’t Add to InequalityView photos
(Bloomberg) -- Federal Reserve Chairman Jerome Powell cast the central bank’s actions during the coronavirus crisis as aimed squarely at helping U.S. workers, a tactic to head off criticism which has dogged it since the last recession: that its policies primarily serve Wall Street and wealthier Americans.

The Fed’s flurry of emergency lending since mid-March has sought to stabilize financial markets and extend credit to companies struggling to find financing from banks and other traditional lending sources. That has helped buoy financial markets and again exposed the Fed to attacks for having rescued investors first. The central bank has attracted additional scrutiny for not mandating companies that access its support to maintain payrolls.

Powell countered by saying the Fed’s real aim is to preserve jobs by keeping firms afloat.

“The pandemic is falling on those least able to bear its burdens, it is a great increaser of inequality,” Powell said Friday during an online discussion when asked whether the Fed’s policies contribute to U.S. inequality. “Everything we do is focused on creating an environment in which those people will have their best chance to keep their job or maybe get a new job.”

He used as an example the Fed’s plans to purchase bonds from companies whose debt has been downgraded since the start of the crisis to junk status.

“By announcing our facility and including those companies, the ones who actually needed the credit in March, those companies have been able to go out and finance themselves,” he said. “They’ve been able to avoid big layoffs. That is the point of all this.”

The Fed chief made his remarks during a discussion hosted by Princeton University’s Griswold Center for Economic Policy Studies and moderated by Alan Blinder, a former Fed vice chairman.

Speaking more broadly, Powell defended recent Fed actions as steps that were unprecedented but necessary because of the urgent nature of the crisis.

Red Lines

“We crossed a lot of red lines that had not been crossed before,” Powell said. “I’m very confident that this is the situation where you do that and then you figure it out.”

Powell’s remarks will probably be the last from a Fed policy maker before officials enter a blackout period at midnight Friday leading up to the June 9-10 meeting of the Federal Open Market Committee. Officials are widely expected to leave interest rates just above zero at that gathering and re-commit to using their full range of tools to support the U.S. economy during the coronavirus pandemic.

Powell didn’t remark on what the committee might do at that meeting.

Main Street

The Fed chair responded to questions about one of its most complex and riskiest programs intended to support the economy -- the Main Street facility -- which has been slow to launch. Powell said the central bank is “days away” from getting it up and running. The loan program is designed to help small and medium-sized businesses that don’t have access to public markets, he said.

Main Street is one of nine Fed emergency lending programs opened or under construction that are aimed at mitigating the economic impact of the virus.

Powell and his colleagues have warned the pandemic may leave deep and lasting scars on the economy even as the U.S. and other countries begin to emerge from lock-downs designed to limit the contagion.

More than 40 million U.S. workers have filed for unemployment benefits in the past 2-1/2 months as businesses shuttered and Americans stayed home. Data released earlier on Friday showed U.S. consumer spending, which accounts for about two-thirds of the world’s largest economy, plunged in April by the most on record.

Negative Rates

Powell said a full economic recovery “will really depend on people being confident that it’s safe to go out.” But he reiterated his skepticism around following other central banks in forcing rates into negative territory.

“It’s just not clear to my colleagues and to me on the Federal Open Market Committee that this is a tool that would be appropriate to deploy here in the U.S.,” he said. “There are clearly some negative side effects.”

For more articles like this, please visit us at

Subscribe now to stay ahead with the most trusted business news source.

©2020 Bloomberg L.P.
« Last Edit: May 30, 2020, 06:46:52 PM by Eddie »
What makes the desert beautiful is that somewhere it hides a well.

Online Surly1

  • Administrator
  • Master Chef
  • *****
  • Posts: 18571
    • View Profile
    • Doomstead Diner
Re: Biggest Lie of the Week
« Reply #1 on: May 31, 2020, 04:22:26 AM »
So now we have Jerome Powell trying to say that Fed policy is for the little guy, and it doesn't lead to inequality.

Who knew Powell had a sense of humor?
"Do not be daunted by the enormity of the world's grief. Do justly now, love mercy now, walk humbly now. You are not obligated to complete the work, but neither are you free to abandon it."


Related Topics

  Subject / Started by Replies Last post
2 Replies
Last post January 20, 2014, 02:54:44 PM
by DoomerSupport
217 Replies
Last post August 04, 2017, 01:02:00 AM
by Karpatok
12 Replies
Last post January 27, 2015, 05:07:56 AM
by MKing