© EPAUS President Donald Trump • Federal Reserve Chairman Jerome Powell
The Fed is tacitly admitting that its deflationary monetary policy has restrained growth and held down wages. Now the Fed is promising to aim higher in order to get more dollar liquidity into the economy.
Powell's 3,000-word address could have been summarized in just one sentence: "President Trump was right; we were wrong."
Powell has been exalted of late as a sage and some have even suggested that he should be Time Magazine's Man of the Year. But for the last several years Trump is the one who has sounded the alarm that the Fed has been too tight, as evidenced by falling commodity prices and long term interest rates (market rates) signaling that expected inflation rates are at half the Fed's target.
Trump may not be a trained economist, but when it comes to how to create growth, this real estate titan has uncanny instincts. At the beginning of this year and pre-pandemic, the economy was steaming forward at the best pace of this new century.
Comment: Policy is what counts, not who reflects or deflects it. The President is but a voice to this 8-family run central banking system. They are: Goldman Sachs, Rockefellers, Lehmans and Kuhn Loebs of New York; the Rothschilds of Paris and London; the Warburgs of Hamburg; the Lazards of Paris; and the Israel Moses Seifs of Rome.