Media mogul Steve Forbes, chairman of Forbes Media, said Fed Chairman Jerome Powell is ready to raise rates at a faster pace, prompting the Federal Reserve He warned that the Fed is “inflicting unnecessary pain” on the U.S. economy by raising interest rates. He also noted that “there is a fundamental flaw in the approach of central bankers and most economists.”
Media mogul Steve Forbes warns about Fed policy
Forbes Media Chairman Steve Forbes warned on March 13 that the Federal Reserve is “inflicting unnecessary pain” on the U.S. economy. His warning came in response to testimony given by Fed Chairman Jerome Powell to the Senate Committee on Banking, Housing, and Urban Affairs.
Federal Reserve Chairman Jerome Powell told a Senate hearing on Tuesday that “the central bank is prepared to raise interest rates higher and at a faster pace than previously expected,” upsetting financial markets,” Forbes began. The media tycoon noted that Chairman Powell’s reasoning was that the U.S. economy “is showing unexpected strength and the Fed may have to do more to contain it.” The official stressed that.
Here we notice a fundamental flaw in the approach of central bankers and many economists. They believe that prosperity causes inflation. They believe that prosperity causes inflation. To cure it, they work to restrain the economy.
“They don’t understand the definition of inflation: to reduce the value of a currency, usually by creating too much of it,” the Forbes chairman stressed, adding.
Natural disasters, wars, Covid Corporation closings, or price increases caused by regulations and taxes that destroy the economy cannot be cured by raising interest rates The Fed has inflicted – and will continue to inflict – unnecessary pain.
Powell told senators at a congressional hearing Tuesday that “from a broad perspective, inflation has moderated somewhat since the middle of last year, but is still well above the (Federal Open Market Committee) FOMC’s long-term target of 2%.” He explained.” We continue to expect that it will be appropriate to continue to raise the target range for the Federal Funds rate in order to achieve a monetary policy stance that is sufficiently restrictive to return inflation to 2% over time.”
Several Fed officials have also stated that further rate hikes are necessary to contain inflation. Last week, Bank of America warned that the Fed would continue to raise rates until the “pain point” of consumer demand. The president of the Federal Reserve Bank of Atlanta warned of “dire consequences” if the Fed loosens its politics prematurely. Meanwhile, economist Mohamed El-Erian said last month that the Fed cannot achieve its 2% inflation target without “crushing” the economy.
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