BIDEN’S RECESSION: The “Political” Fed Is “At the End of Its Rope” – Fighting Inflation Will Take Biden’s Economy into a “Freefall”

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Jerome Powell, the Fed, and Joe Biden are successful a pickle.  They tin either effort to combat grounds precocious ostentation by raising involvement rates, which volition destruct the system for good, oregon permission rates unsocial resulting successful adjacent higher inflation.  It looks similar either way, Powell and Biden (Obama) person nary answers.

Yesterday, we saw again however governmental the Fed is and however overmuch they broadside with the corrupt Democrats.

FED Chair Jerome Powell Says US Economy Is “In Strong Shape” arsenic Economy Drops into Recession

Zerohedge reports this greeting connected Jerome Powell’s remarks versus reality:

TRENDING: IT'S OFFICIAL: Second Quarter GDP Comes In astatine Negative 0.9 Percent -- US OFFICIALLY ENTERS BIDEN RECESSION (Video)

During his post-meeting property conference, Powell insisted the system was not successful a recession.

“There are excessively galore areas of the system that are performing excessively well. I would constituent to the precise beardown labour market. [It is] existent that maturation is slowing.”

As Peter Schiff noted, the Fed seat seemingly picked up its transcript of White House talking points declaring that 2 consecutive quarters of antagonistic GDP maturation doesn’t mean the system is successful a recession.

“If you deliberation the Fed is independent, today’s property league should enactment that story to rest. Powell clearly got the Biden administration memo that recession is not defined by 2 consecutive quarters of falling GDP. Powell adjacent said it’s not his occupation to state a recession,” Schiff said.

Powell has to downplay the GDP. In the archetypal 4th of 2022, GDP came successful astatine -1.6 percent. The Atlanta Fed projects another -1.2% diminution successful Q2. Using the communal definition, that would mean we’re successful a recession now, and we person been each year.

While Powell and others support saying the system is strong, the lone information they consistently constituent to is the labour market. But the occupation marketplace is simply a lagging indicator and adjacent it looks shaky. As Schiff pointed retired during an interrogation with Laura Ingraham, we’ve seen 3 consecutive weeks of expanding first-time jobless claims, and they’re astatine the highest level since October past year.

Meanwhile, if you look astatine that past occupation report, adjacent though we added astir 400,000 jobs successful the constitution survey, the household survey mislaid astir that galore jobs. But if you really look astatine the jobs, astir each of these caller jobs were for radical who already had jobs. These were radical taking 2nd and 3rd jobs due to the fact that they’re struggling to wage the bills. And you person a batch of retirees who are being forced backmost into the workforce due to the fact that ostentation has eviscerated their incomes, and present they person nary prime but to spell to work. So, these are not jobs that radical want. These are jobs that radical are forced to instrumentality due to the fact that the system is truthful weak.”

During the Trump years, the Fed was intelligibly acting arsenic a governmental bully.  They astir unopen down the US system by themselves successful 2018.  They started raising rates arsenic soon arsenic President Trump won the 2016 Election aft years of keeping rates astatine zero for Obama.

TRUMP IS RIGHT – FED is Political and Will Kill His Economy – We’ve Been Reporting connected this for Past Year!

Now with Biden’s actions sidesplitting the economy, the Fed is trying to support the system afloat.  But this whitethorn not beryllium possible.  The US indebtedness is astatine all-time highs and involvement payments connected the indebtedness are increasing arsenic Biden continues to walk relentlessly.  The prognosis is not good.

Zerohedge writes:

If the Fed was truly superior astir warring inflation, it would beryllium rapidly shrinking the wealth supply.

So, the question remains: is the Fed astatine the extremity of its rope? And erstwhile it inevitably reaches that constituent volition it fto go, support tightening to combat inflation, and instrumentality the system into freefall? Or volition it surrender to ostentation and pivot backmost to casual wealth and quantitative easing, letting ostentation tally chaotic successful bid to rescue the economy?