EDITOR NOTE: The University of Michigan consumer survey is showing several disturbing and historic economic trends happening in 2021. One is that buying conditions for housing have fallen to the lowest level in almost 40 years with skyrocketing home prices. The Confounded Interest blog is blaming consumers getting “beaten-up by The Fed’s massive distortion of markets” for the current crisis, and they’ve even coined a new name for it. They are calling it being “Powell’d,” in honor of Fed chairman Jerome Powell. With the growing economic issues, the next step for the Fed is tapering and a rate hike, likely coming in late 2022 or 2023, per Confounded Interest.
I have a new term for consumers that get beaten-up by The Fed’s massive distortion of markets. I call this being “Powell’d”.
The latest example of consumers getting Powell’d is in the University of Michigan consumer survey. Buying conditions for housing just fell to the lowest level since 1982.
Dracula’s enemy Harker says that he sees rate hike in late 2022 or early 2023.
“I am in the camp that believes it will soon be time to begin slowly and methodically — frankly, boringly — tapering our $120 billion in monthly purchases of Treasury bills and mortgage-backed securities.”
Here is a photo of Harker with Fed Chair Powell.
Originally Posted on Confounded Interest