EDITOR NOTE: The narrative that the Fed is attempting to raise asset prices at the expense of the dollar’s purchasing power has always been clear, but now it’s confirmed with these tweets. Fed Chief Powell knows that such a policy shouldn’t cause too much alarm because the Fed is confident that it won’t lead to “large or persistent inflation.” Of course, he’s talking about the “nominal” inflation rate which, by the way, is calculated differently from how it originally was back in the 1980s and 1990s. What’s missing from it is the “cost of living.” The official numbers may say one thing, but the experience of many Americans, particularly those who do not generate most of their wealth from the stock market, tells a very different story. The great wealth divide is clear, and it shows how the Fed is in favor, however indirectly, of suppressing the wealth prospects of the masses in order to boost the wealthier elite. And this divide is about to get much worse as the Fed’s “low inflation” will land a powerful and painful blow to the majority of Americans who still look to the Fed and the government for economic guidance. It’s best to not fall into this camp and “short the Fed” by hedging your wealth with non-CUSIP gold and silver--the only “real assets” that can provide safety and growth in times of inflation.
POWELL SAYS THERE IS A LINK BETWEEN FED LIQUIDITY AND ASSET PRICES
— *Walter Bloomberg (@DeItaone) February 23, 2021
— Mace News (@MaceNewsMacro) February 23, 2021
Fed Chair Powell:
— DailyFX Team Live (@DailyFXTeam) February 23, 2021
POWELL SAYS OVER TIME, GROWTH OF BALANCE SHEET WILL SLOW, BUT ASSET PURCHASES WILL CONTINUE UNTIL SUBSTANTIAL FURTHER PROGRESS SEEN
— Breaking Market News (@breakingmkts) February 23, 2021
Fed's Powell: It does not seem likely that an increase in spending would lead to large or persistent inflation.
Fed's Powell: We could see spending pick up substantially in the second half.
— FXGlobe Market News (@Fxglobe_1) February 23, 2021
Originally posted on Forex Factory