Artis Real Estate Investment Pref Shs Series E T.AX.P.E

RE:RE:MARCH 20- WILL POWELL DO IT AGAIN?

[Torontojay]

spacegimp wrote: I don't really blame Powell , it takes the combined effort of government reducing crazy spending levels to calm inflation. I do blame Powell for stating in a speech in New York just a few months ago that the level of government debt is not a problem... talk about encouraging more reckless spending 

 

The fiscal spending is contributing to inflation. Bank credit conditions should tighten further in the months ahead which should help ease inflation. If I were Jay Powell I would not drop rates unless I see evidence that fiscal spending is under control. Show me that you can contain costs and I will give you a quarter point drop. I have a suspicion that Janet Yellen is going to make inflation more difficult in the following way: 

Jay Powell drops rates a quarter point sometime this year. Janet Yellen seizes the opportunity and spends more into the economy which causes more inflation. Why? Because the money she saves on interest expense is likely to funnel its way back into the economy. More money chasing the same amount of goods. I do not have any confidence in this government and the people working behind the scenes are not the sharpest tool in the shed.