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Powell Knows How To Keep Inflation Under Control?

Fed's Balance Sheet
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EDITOR NOTE: Yesterday, the market staged a powerful comeback upon hearing assurances by Fed Chief Jerome Powell that a) the Fed’s got the market’s back so to speak, keeping interest rates low for an extended period of time, and b) inflation is under control. That last point is a tricky one, as the economy doesn’t work like a machine. There are too many parts and too many variables to think that its function can be fully controlled, and its response can be predicted. Add to this the fact that there are many economists who can argue both sides of the fence the inflationary issue. Betting everything on the word of seven Fed governors is too large a risk. The Fed has been wrong before, and the consequences have been disastrous. There’s nothing to guarantee that its speculations or calculations are accurate. And there’s nothing to guarantee, amid its current QE experiment, that the economy will continue to march to the beat of its drum. Despite addressing concerns about wealth inequality, the Fed continues to further widen the gap between the top wealthiest people in America and the majority of Americans who find themselves at or below the middle. And although there’s nothing that people can do to sway monetary policy, the opportunity to hedge the impending inflationary disaster is open to everyone willing to purchase safe-haven assets like non-CUSIP gold and silver. 

Originally posted on Forex Factory

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