Powell OUT, Warsh IN as Fed Chairman SOON!

[free-bit.co.in]

It could be argued that Powell did his best during his term, but looking at the results, I don't think the Fed passed the test of dealing with inflation very successfully. The persistence of inflation, especially in the last few years, clearly shows the enormous cost of mistakes and delayed decisions in monetary policy. The Fed's view of inflation as temporary and its failure to act aggressively enough for a long time is now affecting people's purchasing power.

Fed can influence inflation through monetary policy, but they don't control everything in the economy. Pandemics, geopolitical tension, war, and energy price are all outside their control. So trying to bring inflation down while keeping the economy out of a recession is no easy task.

Inflation could have been pushed back below 2% during Powell's term as the rate hike started to do their job. But unfortunately, Trump's return and major geopolitical changes, like the tariff war and wars added more pressure on inflation and made thing a lot harder.

It's always easier said than done, mate.

[STT]

Powell I don't mind, he doesn't seem to have a big ego but none the less he still screwed up underestimating inflation.   If he was a fair leader and still badly got it wrong, you got to worry about all of them, the entire body of governance which is the Federal reserve board is too often looking backwards at what just happened, reacting more then anticipating.  

   Its to be expected that we will repeat again excessive inflation and delay in adjusting whatever measures are possible far too late, we'll spike before the effects can be moderated.   The people most exposed to inflation being those whose food bill is their largest expense or similar budgets, the richest can even gain from inflation fairly often though it damages the economy and hurts prospects for all in the end.

[abhiseshakana]

Powell I don't mind, he doesn't seem to have a big ego but none the less he still screwed up underestimating inflation.   If he was a fair leader and still badly got it wrong, you got to worry about all of them, the entire body of governance which is the Federal reserve board is too often looking backwards at what just happened, reacting more then anticipating.  

   Its to be expected that we will repeat again excessive inflation and delay in adjusting whatever measures are possible far too late, we'll spike before the effects can be moderated.   The people most exposed to inflation being those whose food bill is their largest expense or similar budgets, the richest can even gain from inflation fairly often though it damages the economy and hurts prospects for all in the end.

Reading and watching news about Warsh, i conclude he put inflation rate stability (2%) as anchor of his monetary policy. I think his main principle how to maintain monetary credibility in long run. Even FED has dual mandatory price stability and emplyoyment rate but he clearly show that FED will not cut interest rate excessive just to catch full employment figure. So protecting price become Warsh preferable mandate.

He is disciplined and rigid orthodoc people, i think anti dot plot become his main identity, we can see, even Trump push to cut the rate, he insist that US economy is still reasonably secure no need any rate cut in fact, FED has more important home work which is 2% inflation rate. Jackson hole show that he implement his idea quiter FED which mean he will have  high sensitivity with fiscal dominance.