Federal Reserve Chairman Jay Powell warns
Americans they must expect 'SOME PAIN'
amid fears of job losses as the US central
bank tries to bring down crippling inflation
Daily Mail (UK),
by
Rob Crilly
&
Morgan Phillips
Original Article
Posted By: Ribicon,
5/13/2022 2:01:14 PM
Federal Reserve chair Jay Powell issued a stark warning to Americans already struggling with crippling price rises: There will be more pain ahead as the central bank tries to bring down inflation without plunging the economy into recession. The Fed has begun raising interest rates to slow borrowing and spending enough to cool inflation, which hit a year-on-year rate of 8.3 percent last month.
But Powell said the medicine will bring 'some pain' as the Biden administration tries to manage a crisis that threatens to dominate November's midterm elections.(Snip)'I will also say that the process of getting inflation down to two percent will also include some pain,
Reply 1 - Posted by:
Edgelady 5/13/2022 2:09:13 PM (No. 1154305)
Funny how no one in D.C. is experiencing any pain.
17 people like this.
Reply 2 - Posted by:
Sanchin 5/13/2022 2:10:38 PM (No. 1154308)
Pain for us! Not so much for Jay and his friends! We are completely disposable in their eyes.
9 people like this.
Reply 3 - Posted by:
Ribicon 5/13/2022 2:28:21 PM (No. 1154331)
I also like how he's now "Jay" instead of Jerome as he was before. Just a guy from the block; good old Jay with his sleeves rolled up and doing the hard work.
7 people like this.
Reply 4 - Posted by:
DVC 5/13/2022 2:31:08 PM (No. 1154333)
They will be increasing interest rates. Increased interest rates ripple through all business decisions. Moves that were financially sound at low interest rates may be unsound at higher rates, and therefore cancelled. All sorts of upsets and changes will work through the system.
And yes there will be pain, a lot of it. Always is wringing out DEMOCRAT inflation - which is generally assisted by a significant number of folks who pretend to be Repubs.
Expect: downward pressure on the stock market, upward pressure on bond market, downward pressure on housing market and home prices, downward pressure on ALL business expansions and new business initiatives of all kinds.
7 people like this.
Reply 5 - Posted by:
judy 5/13/2022 2:33:14 PM (No. 1154335)
I don't recall Trump saying we will experience pain due to inflation & rising interest rates...
16 people like this.
Reply 6 - Posted by:
deerejon 5/13/2022 2:38:04 PM (No. 1154339)
Expect some Pain,you mean there is more.I honestly don't know how much more pain America can take at this point.I just pray that every Democrat gets thrown out of office this November.
11 people like this.
Reply 7 - Posted by:
Anti_democRAT 5/13/2022 3:24:16 PM (No. 1154388)
They r way to late. The ball is rolling
3 people like this.
Reply 8 - Posted by:
cor-vet 5/13/2022 3:24:53 PM (No. 1154389)
Since these Washington rats are OK with people losing their jobs, if the conservatives can regain power, let's eliminate all of those EPA, CIA, FBI, DOJ, ATF, Dept. of Ed., OSHA, TSA, IRS and Dept of Homeland Security jobs and stop these continuing resolutions to keep the government open.
7 people like this.
Reply 9 - Posted by:
SkeezerMcGee 5/13/2022 3:43:40 PM (No. 1154417)
All of this pain exists and will continue only because Donald Trump was not reelected as President because of massive Democrat outcome determinative voter fraud.
5 people like this.
Reply 10 - Posted by:
bad-hair 5/13/2022 3:52:48 PM (No. 1154431)
If you liked Carter you're going to LOVE Biden.
If you're too young to know who Carter is .... sit down, fasten your seat belts and get ready for 20% mortgages.
7 people like this.
Reply 11 - Posted by:
DVC 5/13/2022 4:02:42 PM (No. 1154448)
At this point, the damage is done. If Trump was back in the WH tomorrow, it would still take higher interest rates for years to burn out this inflation. It would help a LOT to get our oil and gas back in production, and lower the costs of energy. More coal fired power plants to lower electric rates and stop building those damned worthless bird killing white elephants on the prairies. Demolish the ones that they already built.
Lowered energy costs is within reach of a new President with a sane Congress. But the effects of the $4 trillion....that can't be undone without higher interest rates for a few years, at minimum. Exactly how much of the current price increases is energy costs versus just straight money oversupply is difficult to sort out.
4 people like this.
Reply 12 - Posted by:
snowoutlaw 5/13/2022 4:06:24 PM (No. 1154453)
I remember the pain and it wasn't so much the interest rates that are the pain, its the 10-20% unemployment that hurts the most. You don't need a mortgage if you are unemployed. Of course government employees never feel the pain of a company laying off half its work force.
4 people like this.
Reply 13 - Posted by:
smokincol 5/13/2022 5:51:38 PM (No. 1154543)
wait a minute, wait a minute we're not experiencing enough "pain" already, Jerome? where have you been since January , 2021
5 people like this.
Reply 14 - Posted by:
TLCary 5/13/2022 7:00:50 PM (No. 1154606)
Another idea: They kicked up the M2 Money by 40% to buy votes. Put Trump back in, deregulate like you've never deregulated before. Cut government spending to a trickle. Create the most business-friendly environment the world has ever seen. And grow the economy until it's in line with the M2 money supply. Taaa Daaaa. Has the added benefits of an employed population, increased wages, full shelves, an active construction and housing market, etc. Raising interest rates and making peasants out of the middle class isn't the only way to fix this. Odd that every solution to every problem is to make us all poor peasants in tiny houses without climate control, using public transport, and eating bugs. New problem, same solution.
1 person likes this.
Reply 15 - Posted by:
nwcudagal 5/13/2022 7:28:51 PM (No. 1154634)
My husband and I are 68 and not in the greatest health. We spent our last few working years paying off all our debt. But our home value has tripled in the last six years and our property tax is far more than our mortgage ever was. We are lucky to have the income we have, but every year our insurance and medical costs go up so we put $20k a year in a medical savings account. With Brandon in charge getting by is going to be a challenge. We don't go out to eat very often, and no drives in the country side. A very dismal future indeed. I'm afraid to look at my small 403b. I worked all my life for this? FJB. Sorry for the rant.
2 people like this.
Reply 16 - Posted by:
JimBob 5/13/2022 10:20:29 PM (No. 1154763)
#15, you have heard The HairSniffer propose a tax on 'Unrealized Capitol Gains', and lie to us that it was aimed at the Billionaires?
But, the billionaires pay people to manage their wealth, in this case to move it 'offshore' or play some other game so it will not be taxed.
The HairSniffer won't say it, but the obvious main target is American citizens living in their houses, the dollar value of which have gone up significantly. As they have not sold their house, the 'capital gain' is 'unrealized', but the 'Rats want to tax you on the gain in assessed dollar value. Of course, with 15% inflation, that dollar number is going up significantly. They want to tax you into the poorhouse and get EVERYTHING that you once owned.
What's that phrase I have been hearing lately?
"You will own Nothing and Will Be Happy."
I believe the part where they want you (and ME!) to own 'Nothing'!
As far as the 'happy' part, I recall another saying, attributed to some Government agency:
"We're Not Happy Until YOU'RE Not Happy!"
0 people like this.
Reply 17 - Posted by:
BocaLaura 5/13/2022 10:24:16 PM (No. 1154765)
The only people who should feel the pain are those who voted for Biden,
0 people like this.
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Americans understand that having their life's savings destroyed through inflation is a good thing, all part of our Great Leap Forward to owning nothing, and liking it. And when we sell any assets at wildly inflated prices in order to survive, we're OK with being taxed on the illusory profits, for we know that keeping the federal government and its many employees in high clover is also our key priority.