US economy will continue to recover - Powell

[Juggy777]

I was reading Powell (chairman of the FED) statement on US economy, and he’s used the words like starts and stops for the economy, and for a second I started to wonder did I just open an F1 news report?.

It’s pertinent to focus on his words which clearly mean that we may see some positive movements in the economy, but along with it we should brace ourselves for negative side effects too which shall last way longer than we all had initially hoped for.

Further there’s more bad news for the jobless people as he’s claimed that they’ll not be able to land jobs, and thus they will continue to remain jobless in the long run.

This analysis is a big blow to Trump who’s been banking on economic revival to win the elections, and this will even pose a big challenge for Biden (if he wins the elections) because reviving an economy won’t be that easy, and if he fails to revive it then Democrats will badly lose the next elections.

Sources:

https://www.marketwatch.com/story/powell-says-us-economy-will-continue-to-recover-with-stops-and-starts-2020-08-27

https://www.adn.com/nation-world/2020/06/04/trump-banks-on-the-economy-and-his-reelection-prospects-rebounding-quickly-without-more-government-help/

[Coyster]

The U.S. election is in November, that's about three months to go, there is no way Trumps government can revive the economy in such a short period of time, he's reelection or not will depend on what he's done in the last four years and not this remaining three months before the polls (even if it's possible he revives the economy). Trump has made quite a lot of bad decisions as well as statements he failed to keep to, it's up to the voters now.

Powell didn't choose the wrong words there imo, there is no definite direction for the U.S economy atm, of course the government will do everything possible to get things back on track and to get the jobless working again, but it will take time for this to happen, they have been forced to print more money already this period, a move that could also affect the economy later on. It is what it is and the economy is bound to recover slowly.

[exstasie]

“I think we will get through this period, maybe with some starts and stops, with reasonable growth but ultimately we’re looking at…a couple of years of relatively high unemployment,” Powell said in a question-and-answer session after his Jackson Hole remarks.

“The part of the economy which involves getting people together, and feeding them — flying them around the country, having them sleep in hotels and entertaining them— that part of the economy will find it very difficult to recover. That is a lot of workers. That is millions of people whose are really going to struggle to find work,” Powell said.

Realistic assessment, and what I've been expecting for a while. Stagnant job growth, a continued transition from full-time employment to 1099 workers where there is growth, and associated rising levels of medically uninsured.......all while the stock market goes to the moon.

[The Sceptical Chymist]

Further there’s more bad news for the jobless people as he’s claimed that they’ll not be able to land jobs, and thus they will continue to remain jobless in the long run.

Man, I'm hoping that's not going to be the case, because the unemployment "crisis" that happened after 2008/09 was awful, and I can still remember it vividly.  And he's right about the longer-term consequences of the COVID-19 lockdown.  Corporations' upcoming quarterly reports for the next year at least are not likely to be looking too rosy.  It's amazing to me that the stock market is still flying high--though I realize that's probably the result of low interest rates and stimulus/unemployment money.  That can't last forever, though.

This analysis is a big blow to Trump

Fuck Trump and the blow to him.  May it blow that fucking orange wig all the way down Pennsylvania Ave NW on its way to getting stuck in a cherry blossom tree.

The U.S. election is in November, that's about three months to go, there is no way Trumps government can revive the economy in such a short period of time

Oh hell no, he won't be able to do anything in that time frame--but no doubt he'll tell the voters all the things he's going to do (but never will) in his re-election campaign.  

[exstasie]

Corporations' upcoming quarterly reports for the next year at least are not likely to be looking too rosy.  It's amazing to me that the stock market is still flying high--though I realize that's probably the result of low interest rates and stimulus/unemployment money.  That can't last forever, though.

Why not? The Fed can buy up the entire corporate bond market. They can keep any zombie corporate solvent indefinitely. And they've shown their willingness to do just that.

Combined with the incredibly low yields on bonds and treasuries now, there is zero incentive to exit stock the stock market for safe haven markets, and there are strong returns-based incentives to stay in the market.

I can't find it now but I saw an investor poll recently that said investors were significantly more concerned about Fed policy than economic outlook or stock fundamentals. And in my opinion, that's what is being reflected in the charts. From a TA perspective, the stock market (especially the NASDAQ and S&P 500) looks really bullish. That shows the real underlying supply and demand, and that's what really matters, not company fundamentals.

[audaciousbeing]

I was reading Powell (chairman of the FED) statement on US economy, and he’s used the words like starts and stops for the economy, and for a second I started to wonder did I just open an F1 news report?.

It’s pertinent to focus on his words which clearly mean that we may see some positive movements in the economy, but along with it we should brace ourselves for negative side effects too which shall last way longer than we all had initially hoped for.

Further there’s more bad news for the jobless people as he’s claimed that they’ll not be able to land jobs, and thus they will continue to remain jobless in the long run.

This analysis is a big blow to Trump who’s been banking on economic revival to win the elections, and this will even pose a big challenge for Biden (if he wins the elections) because reviving an economy won’t be that easy, and if he fails to revive it then Democrats will badly lose the next elections.

Sources:

https://www.marketwatch.com/story/powell-says-us-economy-will-continue-to-recover-with-stops-and-starts-2020-08-27

https://www.adn.com/nation-world/2020/06/04/trump-banks-on-the-economy-and-his-reelection-prospects-rebounding-quickly-without-more-government-help/

Every leaders of every economy will continue to express massive optimism even in the face of defeats here and there. My country of residence is at the brink of isolated recession but still, the representatives of the economy are still very much hopeful that the economy is improving and on the path of recovery. The annoying part is when they want to talk about the negative, they would then make comparison with another economy experiencing worse scenario just to still paint the picture that they are doing well. Apparently, that is the one of the core reasons why they are appointed to manage the country's purse.

[Haunebu]

What is up with these threads related to the US economy these days? The entire world is suffering thanks to COVID-19 people(Not just the USA) and all world economies are under a huge amount of stress, but they will eventually recover with time.

Coming to the presidential elections, Biden needs to be elected to power in my opinion. If Trump gets re-elected, no words could describe the abnormal thinking of the voters who voted him to power.

[davis196]

Jerome Powell is the chairman of FED.Talking positive BS and being optimistic about the US economy is his main job.If he says something negative or pessimistic about the US economy,Wall Street will go red again.
Trump will lose the elections for sure.It doesn't matter what Jerome Powell says.Thinking that the FED chairman will somehow boost Trump's popularity is pretty naive.

[mariah.sadio]

Gov is ready to save companies from bankruptcy but what did it cost? Tons of newly printed money and increased inflation rates

[Hydrogen]

I was reading Powell (chairman of the FED) statement on US economy, and he’s used the words like starts and stops for the economy, and for a second I started to wonder did I just open an F1 news report?.

It’s pertinent to focus on his words which clearly mean that we may see some positive movements in the economy, but along with it we should brace ourselves for negative side effects too which shall last way longer than we all had initially hoped for.

I get the impression the fed is normalizing the crisis in an effort to avoid rocking the boat. Similar to how they downplayed and trivialized the US real estate bubble for years before it occurred.

Below you can see fed chairman Ben Bernanke downplay the significance of the housing bubble from 2005 until the crisis finally hit hard in 2008.

https://www.youtube.com/watch?v=HQ79Pt2GNJo

History could somewhat be repeating itself here.

[Yatsan]

Further there’s more bad news for the jobless people as he’s claimed that they’ll not be able to land jobs, and thus they will continue to remain jobless in the long run.

This is really a bad news for the big population of people that became jobless because of this pandemic. The government must do something about this for those individuals are really pitiful to think that their suffering would last for a long run. We know that the US have a very large number of population making it hard to offer jobs most specially at this time of pandemic. But the government may at least do something to take care about the welfare of those jobless people because if they are really facing the phase of continuous recovery on their economy, then there must be job offering to be provided to those individuals since they are the once being the essential keys to boost up the economic recovery of their country.

The U.S. election is in November, that's about three months to go, there is no way Trumps government can revive the economy in such a short period of time, he's reelection or not will depend on what he's done in the last four years and not this remaining three months before the polls (even if it's possible he revives the economy). Trump has made quite a lot of bad decisions as well as statements he failed to keep to, it's up to the voters now.

Agreeable. That was nearly too impossible to make happen that there would be a total economic revival to happen for US is known to be the top most country having the most number of covid-19 infected cases and the economy have been struggling due to lots of people being jobless so how come they can promise to have an economic revival in just a span of 3 months before the next election. This is just a boastful words lacking action just to impress the crowd. People must be wise on doing decisions who they must vote for the sake and welfare of their country and fellow country men

[ChiBitCTy]

I'ts hard to see the economy continuing to progress with all things considered.  I honestly have such a hard time getting my head around the logistics of this.  I continue to hear people losing their jobs in masses.  First it was the small business industry but now it's really starting to trickle upwards to larger companies.

It will certainly be a blow to Trumps presidency re-election but I'm not sure that will keep him from a 2nd term, I fear.  I think his supporters are too focused and energetic for it to not happen again, he may be losing in the polls, but his base get out and actually vote.

[exstasie]

I get the impression the fed is normalizing the crisis in an effort to avoid rocking the boat. Similar to how they downplayed and trivialized the US real estate bubble for years before it occurred.

Below you can see fed chairman Ben Bernanke downplay the significance of the housing bubble from 2005 until the crisis finally hit hard in 2008.

https://www.youtube.com/watch?v=HQ79Pt2GNJo

History could somewhat be repeating itself here.

What are you saying exactly? The bubble keeps inflating for 2-3 more years and then comes the blood?

This is really a bad news for the big population of people that became jobless because of this pandemic. The government must do something about this for those individuals are really pitiful to think that their suffering would last for a long run.

Mixed feelings. I was actually quite sick of perverse incentives like giving jobless people $2,400 extra per month on top of state unemployment benefits, paying them ridiculous amounts of money to stay home and not work. I know several people who took a multi-month paid vacation (or worked under the table while pocketing the money) courtesy of the American government. I know homeowners who took the unverified COVID-19 forbearances and deferments on their mortgages and are hoarding all the cash or even investing it in stocks. I also know a self-employed renter who is fucked now because he lost all his income, didn't qualify for unemployment benefits, can't find full-time work, and there is no financial relief for renters like there was given to homeowners. It's really screwed up in the US because self-employed people pay double the payroll taxes but generally can't draw unemployment benefits if needed. It creates perverse incentives against running a small business and in favor of working for all the corporate giants who are monopolizing the economy.

These bureaucratic measures pile money on people who don't need it while letting so many slip through the cracks. I'm much more in favor of universal measures with minimal means testing (the closer to UBI the better) or otherwise severely limiting entitlements and tax subsidies and forcing everyone to compete in a competitive market, including homeowners. If poor renters don't get bailed out, homeowners certainly shouldn't be getting bailed out! The banks should foreclose on mortgagees in default, the housing market should dump due to strong supply, and responsible people who can actually afford to own a home should get their shot to do so at more affordable prices. In a free market where the housing market weren't artificially propped up, renters would also pay much lower rents. The entire system is obviously skewed to screw over people who don't own property.

Either give us a free and competitive market, or make entitlements universal, I guess that's my position. What we have now (especially after the COVID-19 bills) is the worst of both worlds: an un-free, un-competitive market that heavily favors corporations, the wealthy, and current property owners at the expense of everyone else.

[Findingnemo]

This is not really a recovery,thry are just trying to float the market with lot of money so they can bring economic activities back but the unemployment is still high in US and all these things are done because the election is getting nearer so Trump is trying to show he is doing everything which helps their nationality over immigrants which might give him support as well.

[Hydrogen]

What are you saying exactly? The bubble keeps inflating for 2-3 more years and then comes the blood?

I see Bill Gates endorsing the expansion of nuclear power atm. On the other hand, I see the media publishing questionable pieces attacking renewable energy sources like solar and wind. Claiming silicon in landfills from depleted solar panels is more damaging to the environment and climate change than emissions associated with burning coal.

The only interpretation I can think of to explain these and other precedents is ruling elites favor centralized energy sources like nuclear power. It gives governments centralized control over the production and distribution of electricity. Solar and wind are more decentralized, they allow private citizens to install solar panels or wind turbines on their own private property. Producing their own energy makes them more independent and less reliant upon the state.

I think there is a quiet struggle occurring where states and governments structure daily life to make people more reliant and less independent. They don't want to spook people, rock the boat or wake anyone up.

[Silberman]

What is up with these threads related to the US economy these days? The entire world is suffering thanks to COVID-19 people(Not just the USA) and all world economies are under a huge amount of stress, but they will eventually recover with time.

Coming to the presidential elections, Biden needs to be elected to power in my opinion. If Trump gets re-elected, no words could describe the abnormal thinking of the voters who voted him to power.

The elections are coming and one of the most important factors in any election is how the economy is doing recently, if the economy is doing well then the party in power has a good chance of remaining there, if it's not doing well then the opposition has a lot to say about the management of the economy from the party in power giving them better chances to win the election, this is why you are seeing more threads about the US economy and when you add the sheer amount of influence the US economy has and its size then it is not really strange that people are worried about their economy.

[slapper]

The U.S. election is in November, that's about three months to go, there is no way Trumps government can revive the economy in such a short period of time, he's reelection or not will depend on what he's done in the last four years and not this remaining three months before the polls (even if it's possible he revives the economy). Trump has made quite a lot of bad decisions as well as statements he failed to keep to, it's up to the voters now.

Powell didn't choose the wrong words there imo, there is no definite direction for the U.S economy atm, of course the government will do everything possible to get things back on track and to get the jobless working again, but it will take time for this to happen, they have been forced to print more money already this period, a move that could also affect the economy later on. It is what it is and the economy is bound to recover slowly.

If he can revive the economy in such a short period, it will be a remarkable achievement which no president did before. However, it is hard for him to do that despite the fact that he is a businessman. Many people currently don't have any job but it is not necessarily mean that the economy is going down. When we look at the big picture, there are many aspects recovering extremely fast, especially stock markets and futures. Well, things seem to be awful at the moment but I can ensure that we will soon be back on the track

[Kasabus]

The U.S. election is in November, that's about three months to go, there is no way Trumps government can revive the economy in such a short period of time, he's reelection or not will depend on what he's done in the last four years and not this remaining three months before the polls (even if it's possible he revives the economy). Trump has made quite a lot of bad decisions as well as statements he failed to keep to, it's up to the voters now.

Powell didn't choose the wrong words there imo, there is no definite direction for the U.S economy atm, of course the government will do everything possible to get things back on track and to get the jobless working again, but it will take time for this to happen, they have been forced to print more money already this period, a move that could also affect the economy later on. It is what it is and the economy is bound to recover slowly.

If he can revive the economy in such a short period, it will be a remarkable achievement which no president did before. However, it is hard for him to do that despite the fact that he is a businessman. Many people currently dont have any job but it is not neccesary mean that the economy is going down. When we look at the big picture, there are many aspects recovering extremely fast, especially stock markets and futures. Well, things seem to be awful at the moment but i can ensure that we will soon be back on the track

US economy will definitely recover but it might take not only months but years for the whole economy to be normal again. Small and large companies are still closing their businesses and that will also affect the people's economy too as they have no jobs to sustain their daily needs. Not only US is affected with this pandemic but even the other countries as well but it would be the president's job on how he will handle his fellowmen to overcome this worldwide crisis.

[Reatim]

Election is near In November People will decide what the US economy will come in the next presidential term Because if trump needs time to make
 US great Again then people will bring Him back to do His will and to Make what he needs to Finish in the next' term he will be Having.

But I doubt that People of America will Make Him president again,IMO there must be a New one to try another approach specially
in Engaging in Other country in which trump fails to do,Sorry for trump supporters but i
 Just wanna give my opinion over matter.

But at this Moment?things are far different Because There are too many Job losses even before trump take the seat and it is getting worst until now
 so the economy needs to face a lot before being great again.

[TheGreatPython]

What happens in these few months will not have anything to do with whether Trump will be elected or not, and moreover this is something that is quite out of his control. There will be a growth, but it’s not going to happen in a flash, it’s going to take some time before things gets back on normal ground.

The main question people will be asking is how much he has been able to push their economy in the past years before now, and then there are also other things that will go into consideration. I don’t live there, but from what I have heard he helped to raise to raise the economy when he was elected as the president, but people still have so much hatred for him which I think has to do with other things.